U.S. Seizes $225M in Crypto Linked to Fraudulent Schemes

The U.S. Department of Justice has moved to confiscate approximately $225 million in cryptocurrency tied to alleged fraud operations. A forfeiture request filed in Washington, D.C. federal court claims the assets were either illicitly obtained or employed in criminal activities, marking a significant escalation in crypto-related asset recovery efforts.

Authorities identified over 400 victims of so-called 'pig butchering' scams, where fraudsters cultivated trust before diverting investments through complex blockchain obfuscation techniques. Matthew R. Galeotti of the DOJ's Criminal Division reaffirmed the government's commitment to combating crypto-enabled financial crimes.

This seizure WOULD expand the U.S. government's growing cryptocurrency treasury, setting important precedents for tracking and recovering digital assets across wallet networks. The case underscores increasing regulatory scrutiny of blockchain transactions while demonstrating law enforcement's evolving technical capabilities.