#CryptoStocks The U.S. Department of Justice has initiated a civil forfeiture case to seize more than $225 million in digital assets connected to a large-scale, global cryptocurrency investment fraud network. The action represents the largest single cryptocurrency seizure in the history of the U.S. Secret Service.
The complaint, filed on June 18 in the U.S. District Court for the District of Columbia, targets funds that investigators traced through hundreds of thousands of blockchain transactions designed to obscure their illicit origins. The operation marks a significant move by the federal government to disrupt organized cybercrime rings and recover funds for defrauded investors.
Details of the Sophisticated Scheme
According to the Justice Department, the seized funds were part of a sophisticated, blockchain-based laundering operation. The criminal network allegedly used so-called “pig butchering” scams, where fraudsters build trust with victims online before convincing them to invest in fraudulent cryptocurrency platforms.
Victims were reportedly misled by false promises of high returns, unknowingly transferring their funds to scammers operating from overseas. Law enforcement officials stated that the network then moved the stolen funds through a complex maze of cryptocurrency addresses and accounts to conceal the source. The investigation has so far identified over 400 potential victims globally.
Related: North Korea-Linked Lazarus Group Targets BitMEX Employee with Phishing Scam
Interagency Cooperation Led to Seizure
The successful tracking and seizure of the assets was the result of a coordinated investigation led by the U.S. Secret Service and the Federal Bureau of Investigation (FBI), both operating out of their San Francisco Field Offices.
A critical component of the operation was the assistance of private sector partners. Stablecoin issuer Tether was acknowledged by the DOJ for its cooperation in freezing the $225.3 million in USDT, which was instrumental in securing the funds before they could be further dispersed.
