The U.S. Department of Justice has seized over $225 million in cryptocurrency linked to fraudulent investment scams involving over 400 victims. The assets, targeted in a civil forfeiture case, were part of money laundering operations. The DOJ praised Tether for helping investigate what’s known as "pig butchering" scams—where victims are tricked into investing more and more over time.
In 2024, crypto fraud losses topped $5.8 billion, with over $9.3 billion lost in digital asset scams overall. Separately, New York officials froze and seized additional funds from a social media-based crypto scam affecting 300+ victims. The DOJ says funds recovered will go to compensate victims, underscoring a nationwide crackdown on crypto crime.