
In a shocking scam that has affected millions of Americans and others worldwide, federal agents made the largest crypto seizure ever, with $225.3 million in cryptocurrency tied to global fraud schemes.
The Department of Justice’s (DOJ) massive haul targets sophisticated “pig-butchering” scams that have stolen billions from unsuspecting Americans through fake investment platforms.
The seizure marks the largest cryptocurrency recovery in U.S. history related to these increasingly common fraud schemes.
“Pig-butchering” scams, named for how victims are “fattened up” before the financial slaughter, have exploded in popularity among criminal networks who use romance and investment promises to drain victims’ life savings.
Special agent in charge of the U.S. Secret Service’s San Francisco Field Office, Shawn Bradstreet, said:
“This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history.”
Using advanced blockchain analysis, FBI and Secret Service investigators traced stolen funds through complex transaction networks designed to hide their criminal origins.
The agencies filed a civil forfeiture complaint in the U.S. District Court for the District of Columbia to permanently seize these assets from the fraudsters.
The FBI has connected the criminal network to at least 400 victims worldwide.
Government officials reported over $5.8 billion in losses from cryptocurrency investment fraud last year alone.
This is a devastating blow to hardworking Americans who believed they were making legitimate investments to secure their financial futures.
“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,” Assistant Director Jose A. Perez of the FBI Criminal Division said.
The schemes typically begin with scammers posing as friendly strangers contacting victims through dating apps, social media, or text messages.
After building trust over weeks or months, criminals convince victims to invest in seemingly legitimate cryptocurrency platforms that are actually elaborate facades designed to steal money.
These criminal enterprises have become increasingly sophisticated.
They use technology to create convincing fake investment websites complete with real-time market data and fabricated profits, luring victims deeper into their trap.
When victims attempt to withdraw their supposed earnings, they discover they have been scammed.
In addition, major cryptocurrency company Tether assisted authorities in the operation, highlighting a rare instance of cooperation between law enforcement and the often regulation-resistant crypto industry.
The seized funds are now subject to forfeiture proceedings with the goal of eventually returning money to victims.
While cryptocurrency offers legitimate financial opportunities, this case serves as a reminder that American consumers need strong protections from predatory actors exploiting new technologies.
The FBI continues to urge citizens to thoroughly research investment opportunities, verify the identity of online contacts, and report suspicious activity immediately.