The U.S. Department of Justice has initiated a significant civil forfeiture action targeting more than $225 million in cryptocurrency, linked to sophisticated “pig butchering” scams and crypto investment fraud. This legal move, filed in federal court by the U.S. Attorney’s Office for the District of Columbia, follows an extensive investigation involving the U.S. Secret Service and FBI. Utilizing advanced blockchain analytics, authorities traced illicit funds through a complex web of transactions designed to obfuscate the origin and movement of stolen assets.
The indictment highlights a sprawling on-chain money laundering operation, where perpetrators dispersed stolen funds across numerous crypto wallets to evade detection. The scheme victimized dozens within the U.S., with global losses impacting over 400 individuals, some suffering multi-million dollar financial damages. This case represents the largest cryptocurrency seizure in the Secret Service’s 160-year history, underscoring the growing regulatory focus on crypto-related financial crimes.
Notably, the Department of Justice’s Computer Crime and Intellectual Property Section spearheads the prosecution, supported by cooperation from stablecoin issuer Tether. This collaboration exemplifies the increasing role of industry stakeholders in combating crypto fraud and enhancing regulatory compliance.