The US Department of Justice has announced the seizure of over $225 million in cryptocurrency linked to investment fraud. This article covers the key aspects of this event.
Announcement of Fund Seizure
The US Department of Justice announced that it filed a civil forfeiture complaint against over $225.3 million in cryptocurrency. These funds are linked to money laundering from victims of fraudulent investment schemes. In the US legal system, such complaints are filed against the assets themselves rather than the parties connected to them.
Tether's Assistance in the Investigation
Interim US Attorney for the District of Columbia, Jeanine Pirro, noted that plans are in place to make the victims of the schemes whole again using the seized funds. Tether, the issuer of a stablecoin, acknowledged its assistance in the investigation, indicating that the seizure is related to 'pig butchering' fraud, where criminals convince victims to send increasingly larger amounts of money over time.
Expanding the Fight Against Fraud
According to a report from the FBI on cyber crimes, crypto investment fraud led to over $5.8 billion in losses in 2024. On the same day the complaint was announced, officials in New York reported the seizure of funds tied to a cryptocurrency investment scam totaling $140,000 and freezing an additional $300,000, which resulted in over $1 million in losses.
The seizure of over $225 million in cryptocurrency highlights the urgent need for active measures against fraud in digital finance. A focus on the victims of scams is becoming a critical aspect of law enforcement efforts.
