In a bold legal move, the U.S. Department of Justice has filed a civil forfeiture complaint to seize more than $225 million in cryptocurrency linked to a widespread scam operation. Filed in the U.S. District Court for the District of Columbia, the complaint alleges that this digital fortune came from fake crypto investment schemes—also called “cryptocurrency confidence scams”.
These scams tricked people into thinking they were making smart financial investments. But once the money was sent, it was moved through a vast and complex web of transactions across the blockchain. The purpose was to hide where the money really came from and prevent law enforcement from tracking it.
Investigators say the fraud involved a massive laundering network that conducted hundreds of thousands of transactions. This network made the stolen funds appear legitimate and scattered them across many digital wallets. Thanks to cutting-edge blockchain analysis, law enforcement was able to trace the money back to its criminal roots.
How Victims Were Tricked and Money Was Hidden
According to the complaint, more than 400 people were lured into this fraud, often through social media, online chats, and even dating platforms. Victims were told they were investing in promising cryptocurrency opportunities. Once they transferred funds, scammers quickly moved the money using digital tools designed to cover their tracks.
The FBI’s 2024 Internet Crime Report highlights that cryptocurrency investment scams caused over $5.8 billion in reported losses in 2024 alone. These losses often left victims with empty bank accounts and no way to recover their savings.
Assistant Director Jose A. Perez of the FBI Criminal Division stated, “The FBI will not standby while these criminals target unsuspecting victims who believe they are making legitimate investments.” The agency remains committed to investigating such crimes and warning the public about their impact.
Law enforcement, including the FBI San Francisco Field Office and the U.S. Secret Service (USSS), worked for months to break through the complex laundering system. With help from cryptocurrency company Tether, they were able to freeze the stolen funds before they could be withdrawn or lost permanently.
Largest Crypto Seizure in Secret Service History
This case marks a historic moment. The $225.3 million seizure is the largest cryptocurrency seizure ever conducted by the U.S. Secret Service. Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office said, “These scams prey on trust, often resulting in extreme financial hardship for the victims.”
Matthew R. Galeotti, who leads the Justice Department’s Criminal Division, emphasized that this is just one of many steps the government is taking to stop crypto fraud. “These schemes harm American victims, costing them billions of dollars every year,” he said.
U.S. Attorney Jeanine Pirro for the District of Columbia also voiced her support, stating that under her leadership—and with support from President Trump and Attorney General Bondi—the fight against crypto-related fraud is a top priority. She described the case as a major example of the government’s effort to “rip stolen funds from the hands of foreign criminals” and help make victims whole.
The case is being handled by a skilled team of prosecutors and attorneys, including Trial Attorneys Stefanie Schwartz and Ethan Cantor of the Justice Department’s Computer Crime & Intellectual Property Section, and Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr.