Key Highlights
- DOJ filed five civil forfeiture complaints seeking more than $25 million in cryptocurrency linked to fraud schemes.
- Investigations covered fake investment platforms, romance scams, and asset recovery fraud targeting victims in the U.S. and Canada.
- Blockchain analysis traced funds through hundreds of wallet addresses used to launder stolen cryptocurrency.
The U.S. Department of Justice (DOJ) has filed civil forfeiture complaints seeking to recover more than $25 million in cryptocurrency allegedly tied to a series of fraud schemes that targeted victims in the United States and Canada.
According to the official release on Tuesday, the assets were identified during five separate investigations involving fake cryptocurrency investment platforms, romance scams, and fraudulent asset recovery services. Investigators allege the proceeds were moved through hundreds of blockchain addresses to conceal their origin before the funds were frozen.
The seizures are part of the DOJ’s Scam Center Strike Force, a multi-agency initiative launched in 2025 to investigate crypto-related fraud linked to overseas scam networks. According to the DOJ, the task force has recovered more than $800 million in assets since it was established.
How the money was hidden
Federal prosecutors said investigators spent months tracing cryptocurrency through complex laundering chains designed to obscure the movement of stolen funds.
U.S. Attorney Jeanine Ferris Pirro said the operation demonstrates how blockchain analysis is increasingly being used to dismantle international fraud networks. “This $25 million seizure is a direct result of the Scam Center Strike Force I launched in November 2025, and it demonstrates the power of aggressively targeting these international fraud networks,” she said.
She added that investigators had disrupted complex money laundering networks while protecting victims and said authorities would continue targeting those responsible and dismantling similar criminal operations.
Where the $25M came from
The civil forfeiture actions stem from five separate investigations involving different types of cryptocurrency fraud. One case began after Canadian authorities identified suspicious cryptocurrency wallets linked to fraudulent investment platforms. Investigators later connected the network to more than 270 victim transactions and are seeking to recover approximately $10.4 million.
A second investigation involved a romance scam in which more than 200 victims were allegedly persuaded to invest in fake cryptocurrency opportunities after establishing relationships online. According to the DOJ, the proceeds were moved through hundreds of intermediary wallet addresses before being consolidated into laundering networks. Authorities are seeking to forfeit about $12.08 million tied to that scheme.
The remaining cases involve victims in the Washington metropolitan area who allegedly lost funds through fraudulent crypto investment platforms and fake asset recovery services, bringing the total amount targeted across the five forfeiture complaints to more than $25 million.
According to investigators, much of the laundering infrastructure used in the schemes was linked to Southeast Asia. The DOJ said it traced digital infrastructure connected to the fraud to China, Malaysia, and Cambodia, while noting that the investigations remain ongoing as authorities continue identifying suspects and tracing additional assets.
Crypto fraud continues to evolve
The latest seizures show how crypto scams have expanded well beyond fake investment websites.
In June, the DOJ dismantled a Chinese-linked intelligence operation that allegedly used cryptocurrency payments, AI-generated identities, and fake freelance recruitment platforms to pay individuals gathering sensitive U.S. government information secretly. While the objective differed from financial fraud, investigators said cryptocurrency once again played a central role in moving funds while concealing the identities of those involved.
Separately, in May, New Zealand authorities investigated an $800,000 cryptocurrency romance scam in which fraudsters posing as a retired U.S. military general convinced a victim to transfer digital assets over an extended period.
Together, the cases reflect a broader trend in which cryptocurrency has become a common payment mechanism across investment scams, romance fraud, cyber-enabled espionage, and other cross-border criminal operations.
Global crackdown continues
The latest forfeiture actions add to a growing series of international enforcement efforts aimed at disrupting crypto-enabled criminal activity.
While blockchain transactions remain publicly traceable, authorities say organized fraud groups continue adapting by using increasingly complex wallet networks, cross-chain transfers, and overseas infrastructure to conceal stolen funds.
The DOJ said the five investigations announced this week represent only a portion of the broader cases currently being pursued under the Scam Center Strike Force as federal agencies continue expanding efforts against cryptocurrency-based financial crime.
Also Read: India’s ED Probes $35M (₹337 crore) Crypto Scam Run by Self-Styled ‘Key Opinion Leaders’
