In a major crackdown on cryptocurrency-related fraud, more than $225.3 million in cryptocurrency has been seized by U.S. authorities, setting a record for the largest seizure of its kind. The U.S. Attorney’s Office filed a civil forfeiture complaint after an extensive investigation by the U.S. Secret Service and the FBI, revealing a complex network designed to defraud investors through cryptocurrency confidence scams. This action was announced by U.S. Attorney Jeanine Ferris Pirro and other top officials, according to the U.S. Attorney’s Office.
The complaint alleges that the involved cryptocurrency addresses were part of a money laundering network on the blockchain. This network conducted hundreds of thousands of transactions aimed at hiding the proceeds derived from fraud. As detailed in the investigation, more than 400 victims worldwide believed they were making legitimate cryptocurrency investments, leading to millions in losses. “Under my leadership, with the support of President Trump and Attorney General Bondi, the U.S. Attorney’s office for the District of Columbia is taking a leading role in the fight against crypto-confidence scams,” U.S. Attorney Pirro stated U.S. Attorney’s Office.
Special Agent in Charge Shawn Bradstreet of the U.S. Secret Service’s San Francisco Field Office highlighted the historic nature of the seizure, stressing the scams’ reliance on exploiting trust and the financial devastation they cause to victims. Furthermore, FBI Special Agent in Charge Sanjay Virmani pointed out the elaborate nature of the scheme and the agency’s commitment to pursuing the criminals behind these operations. “Cryptocurrency investment schemes can have devastating and long-lasting consequences for victims, far beyond just financial losses,” Virmani stated, per the U.S. Attorney’s Office.
In the context of the broader issue, the FBI Internet Crime Complaint Center’s 2024 Internet Crime Report mentioned that such cryptocurrency investment frauds caused more than $5.8 billion in reported losses last year alone. This investigation, which benefited from cooperation with the cryptocurrency firm Tether, was led by the Secret Service’s San Francisco Field Office and the FBI’s San Francisco Field Office. Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock, Jr., along with Trial Attorneys Stefanie Schwartz and Ethan Cantor of the Justice Department, are handling this particular case. The Department of Justice has encouraged victims of cryptocurrency investment fraud and cyber-enabled crime to come forward by contacting the FBI Internet Crime Complaint Center.
