US DOJ seeks to take $225M in cryptocurrency linked to pig butchering scams

DOJ Targets Cryptocurrency Investment Fraud

Officials from the U.S. Department of Justice have revealed a coordinated effort alongside the Secret Service to address a significant cryptocurrency investment fraud case, amounting to over $225 million.

In a notice issued on Wednesday, the DOJ announced that they had filed civil forfeiture actions against more than $225.3 million in cryptocurrency. It’s important to note that in this context, the complaints are directed at the assets themselves, rather than the individuals involved. U.S. authorities claim that the cryptocurrency in question was used to launder money obtained from victims of fraudulent investment activities.

Janine Piro, an interim U.S. attorney for the District of Columbia and a former Fox News host, stated that the intention is to utilize the seized funds to compensate the victims affected by this scheme. While specific details of the investment fraud remain unclear, the complaint suggests that over 400 people may have fallen victim to this fraudulent cryptocurrency operation, leading to millions in losses.

Tether, the stablecoin issuer, has also confirmed its collaboration with the DOJ in this investigation, declaring in a blog post that the schemes were related to what’s known as the “pig butchering” fraud. This term refers to a scam technique where victims are gradually manipulated into sending increasing amounts of money over time.

The FBI’s Internet Crime Complaints Center reported that crypto investment frauds exceeded $5.8 billion in losses in 2024. Moreover, it indicated that Americans faced over $9.3 billion in total fraud related to digital assets that year.

National Efforts Against Fraud

The DOJ’s announcement coincided with news from New York officials about freezing an additional $300,000 tied to cryptocurrency investment scams that used fake advertisements on social media. This scheme reportedly resulted in losses exceeding $1 million, affecting more than 300 victims.

During a press briefing concerning the civil forfeiture case, Piro sidestepped inquiries on whether the Justice Department would scrutinize former President Donald Trump’s ties to the cryptocurrency sector. She mentioned the recent passage of the Genius Act, legislation aimed at regulating stablecoins in the U.S. Senate, but emphasized that the DOJ’s main focus is on assisting the individuals affected by these frauds.