In a landmark move, US law enforcement has seized over $225 million in cryptocurrency connected to an international investment Crypto scam, according to an announcement by the Justice Department on Wednesday. This marks the largest-ever financial seizure linked to “crypto confidence” scams, a rising form of digital fraud that lures victims into bogus cryptocurrency investment platforms. The operation affected more than 400 individuals globally, with dozens of American citizens among the victims. The perpetrators allegedly conducted hundreds of thousands of transactions to obscure the source of the funds, making it one of the most sophisticated laundering operations ever uncovered in crypto-related crime.
Rising Threat of Crypto Fraud
The seized funds are now in the possession of the US government, and efforts are underway to return the stolen assets to victims, said Shawn Bradstreet, Special Agent in Charge at the US Secret Service, during a press briefing. The case underscores a broader and alarming trend in digital fraud. According to FBI data, losses from Crypto scam have skyrocketed from $2.57 billion in 2022 to $4 billion in 2023, with a sharp increase to $5.8 billion projected in 2024.
Many of these schemes fall under a type of fraud known as “pig butchering,” where victims are slowly manipulated into trusting fraudulent investment schemes, often leading to devastating consequences. In some tragic cases, like that of an American man in his 80s, victims have even taken their own lives after losing their life savings.
International Network and Policy Concerns
Investigators traced parts of the scam operation to Southeast Asia, with some activity originating in the Philippines, and prior probes linking similar Crypto scam to large compounds near the Myanmar-Thailand border. These frauds, according to officials, are typically operated by organized criminal networks that prey on personal relationships and emotional manipulation. The recent crackdown also holds broader political implications.
While the Biden administration had earlier formed the National Cryptocurrency Enforcement Team in 2022 to tackle digital asset crimes, an April 2025 memo from Deputy Attorney General Todd Blanche accused the administration of using legal actions to indirectly regulate the crypto sector. The same memo also disbanded the enforcement team, sparking concerns among law enforcement officials about the future of crypto crime prosecution. However, Jeanine Pirro, interim US attorney for the District of Columbia, reaffirmed the government’s commitment to fighting digital fraud: “This is an unregulated Wild West… but it’s not just the West. It’s the Wild North, East, and South.”
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