Key Insights:
- DOJ seizes $225M in crypto tied to “pig butchering” scams, impacting 400+ victims globally.
- Blockchain forensics helped trace illicit crypto funds across hundreds of thousands of transactions.
- Crypto fraud caused $5.8B in losses in 2024, with “pig butchering” schemes responsible for over half.
In a major enforcement move, the U.S. Department of Justice has filed a civil forfeiture action to seize over $225 million in crypto scams. This digital currency was allegedly linked to global “pig butchering” scams that defrauded more than 400 people worldwide.
The case may reveal how transnational fraud networks operate through blockchain-based laundering systems, using social media and online platforms to deceive and steal from unsuspecting victims.
Largest Crypto Scams Seizure in Secret Service History
The Justice Department, on June 18, 2025, announced the filing of a civil forfeiture complaint in the District Court for the District of Columbia. The action seeks to seize approximately $225.3 million in USDT, a U.S. dollar-pegged stablecoin issued by Tether.
Per the DOJ, the funds were connected to a large-scale investment scam that used personal communication apps to lure victims.
The suspects allegedly posed as trusted advisers or romantic interests to manipulate victims into transferring funds into fake investment platforms. Once the money was sent, the scammers disappeared.
Officials said this seizure was the largest ever involving digital assets by the U.S. Secret Service. “These scams prey on trust, often resulting in extreme financial hardship for the victims,” said Shawn Bradstreet, Special Agent in Charge.
Crypto Scams Used Complex Blockchain Networks
According to investigators, the scammers used a sophisticated blockchain-based laundering network that executed hundreds of thousands of transactions. These transactions were intended to obscure the origins of the funds and move them through different wallets and accounts.
Blockchain analytics companies and law enforcement worked together to trace the path of the funds. The money was eventually linked to what prosecutors described as “scam compounds” located in Southeast Asia, including the Philippines and Myanmar.
Prosecutors stated that some of these scam compounds are operated by criminal groups that exploit trafficked workers to run online fraud operations. Victims of human trafficking are forced to engage in online messaging scams under strict surveillance and threats.
The seizure was the result of close collaboration between the DOJ, the FBI, the U.S. Secret Service, and private blockchain firms. Stablecoin issuer Tether helped in freezing the assets.
Law enforcement traced the movement of the stolen crypto assets through blockchain forensics and wallet tracking tools. This allowed them to identify key addresses involved in the laundering process.
U.S. Attorney Jeanine Pirro confirmed that her office was working with national and international partners to seize and return the funds. “With the support of President Trump and Attorney General Bondi, this office is working to return stolen funds to victims,” Pirro said in a statement.
Crypto Scams Losses Surged in 2025
The FBI’s Internet Crime Complaint Center (IC3) reported that cryptocurrency investment fraud schemes led to more than $5.8 billion in reported losses in 2024. A more recent estimate from April 2025 placed the total figure closer to $9 billion, with pig butchering scams responsible for over half.
Pig butchering scams typically involve long-term manipulation, where scammers build trust over time. They often use dating apps or social media to start conversations before convincing victims to invest in fake platforms.
Officials said the case could help expose wider networks involved in laundering digital assets. These networks often cross borders and take advantage of gaps in oversight.
The money is presently under government custody while the DOJ is trying to compensate the money to the victims. The victims are advised to report the cases on the FBI IC3 portal with the code BT06182025.
Assistant United States Attorneys Rosenberg and Blaylock Jr. of the District of Columbia, and Rick Blaylock, Jr. along with the Computer Crime and Intellectual Property Section of the Department of Justice, are spearheading the legal side of the case. The DOJ has not established whether anyone has been arrested but has instead stated that investigations are still taking place.
The police think that such an enforcement framework with the help of blockchain analytics and legal seizure capabilities can be employed in future operations against crypto fraud.
