The US Department of Justice (DOJ) has reported a large-scale seizure of cryptocurrencies linked to fraudulent schemes. These actions are aimed at protecting affected investors.
Disclaimer and Details of the Seizure
The US Department of Justice, also known as the DOJ, announced it has seized over $225 million in digital assets connected to fraudulent investment schemes. This action was carried out by the US Secret Service and targets cryptocurrency funds allegedly laundered through fake crypto investment scams that defrauded hundreds of individuals. Filed in the District of Columbia, the complaint focuses on the assets themselves, rather than naming specific defendants. Interim US Attorney for D.C., Jeanine Pirro, stated that authorities intend to return the funds to the victims, although exact timelines and procedures remain unclear.
The Role of 'Pig Butchering' Fraud
The DOJ credited stablecoin issuer Tether for its cooperation in helping trace and freeze the illicit funds. According to Tether’s official statement, the seized cryptocurrency is believed to be linked to ‘pig butchering’ scams—a type of fraud where criminals build trust with victims over time, gradually encouraging them to invest larger amounts in fake crypto schemes. This tactic has gained traction in recent years, particularly targeting individuals through social media or dating platforms. Once victims are ‘fattened up,’ scammers convince them to send more money until the funds are siphoned off entirely.
Wider Crackdown on Fraud
The DOJ announcement coincided with separate actions by New York officials, who reported the seizure of $140,000 and the freezing of an additional $300,000 connected to a similar social media-based crypto scam. That scheme reportedly impacted over 300 victims and caused losses exceeding $1 million. When asked whether this enforcement strategy would be extended to probe political figures such as President Donald Trump for potential crypto-related misconduct, Pirro declined to comment. She instead pointed to the recent passage of the GENIUS Act in the Senate—a bill aimed at regulating stablecoins—and reiterated the DOJ’s priority: protecting everyday Americans from being scammed out of their life savings.
The seizure of over $225 million in cryptocurrencies highlights the growing attention by authorities to fraud in the digital asset space. These actions are aimed at helping affected citizens recover their funds and prevent further financial losses.
