U.S. Seizes $225.3 Million in Cryptocurrency from Global Fraud Network

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.

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.

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.

This case highlights a growing trend in digital asset fraud. The FBI’s Internet Crime Complaint Center (IC3) reported that investment fraud accounted for $5.8 billion in cryptocurrency losses in 2024 alone. The Department of Justice is urging anyone who believes they may have been a victim of such scams to file a report at the FBI’s Internet Crime Complaint Center. For those who believe their case may be related to this specific seizure, the DOJ has requested they include the code “BT06182025” in the narrative of their complaint.

The U.S. Secret Service has announced its largest-ever seizure of cryptocurrency, totaling $225.3 million, in a case involving "pig butchering" scams. These scams, which originate from networks of scammers, typically involve criminals luring victims into sending funds for purported investments, often through fake social media profiles and sob stories. The scammers liken the process to fattening up a pig before it is slaughtered, hence the name "pig butchering."

The seized cryptocurrency was in the form of Tether's USDT stablecoin, which is pegged to the value of the U.S. dollar. The investigation revealed that the funds were laundered through the OKX exchange after being stolen from would-be investors. The scam operators dispersed the proceeds across an extensive group of cryptocurrency addresses and accounts on the blockchain to conceal the source of the illicitly obtained funds.

The U.S. Department of Justice (DOJ) played a crucial role in the investigation, working closely with Tether and the U.S. Secret Service to facilitate the seizure. Tether's CEO, Paolo Ardoino, stated that the company is committed to setting the standard for compliance in digital assets and ensuring that stablecoins are not misused by bad actors. Tether has previously frozen $2.7 billion in tokens related to criminal activity, demonstrating its proactive approach to combating illicit use of its cryptocurrency.

The investigation uncovered that over 144 accounts on the OKX exchange, traced back to IP addresses in the Philippines, deposited $3 billion in crypto over the period of one year. This high-volume money laundering operation was part of a sophisticated blockchain-based money laundering network that executed hundreds of thousands of transactions. The DOJ's seizure of $225.3 million in USDT marks a significant milestone in the fight against cryptocurrency-related fraud. This case highlights the growing sophistication of cybercrime and the need for enhanced cooperation between law enforcement agencies and cryptocurrency companies to combat such activities. The successful seizure sends a strong message to scammers and fraudsters that their illicit activities will not go unpunished.