DOJ Seizing Record $225 Million in Illicit Cryptocurrency after Investment Scams

The Department of Justice filed a motion to seize $225 million in cryptocurrency that was gained illegally through online scams known as “pig butchering.” It’s the largest scam-related cryptocurrency seizure in U.S. history.

Federal prosecutors in Washington, DC, filed a civil forfeiture action to seize the funds, which are traced to a number of cryptocurrency addresses and contain crypto in Tether (USDT), that was laundered to conceal the source of the funds. 

Law enforcement says the profits were gained illegally through “pig butchering” - frauds in which scammers use social engineering to build trust over time before directing victims to fraudulent investment portals. In this case, the fake investment platforms mimicked legitimate trading environments, with victims depositing funds and being denied withdrawal requests. 

“These scams prey on trust, often resulting in extreme financial hardship for the victims,” said U.S. Secret Service Special Agent in Charge Shawn Bradstreet. “This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history.”

According to court records, the perpetrators, located in Asia, scammed the victims and then used a blockchain-based money laundering network to conceal the proceeds with the funds routed through multiple layers of intermediary wallets and laundering structures. They were moved across Ethereum, Bitcoin, and TRON networks before consolidation into USDT.

The money was traced back to more than 400 victims, who collectively suffered millions in losses. 

"The forfeiture of these illicit funds is a powerful tool in the FBI’s toolbox to stop the fraudsters who are operating online from stealing from the American people," said FBI Criminal Division Assistant Director Jose A. Perez. "The FBI will not standby while these criminals target unsuspecting victims who believe they are making legitimate investments.” 

The ongoing investigation is being conducted by the U.S. Secret Service San Francisco Field Office and the FBI San Francisco Field Office. 

Crypto fraud was responsible for more than $5.8 billion in reported losses in 2024, according to FBI data.