Pig Butchering Scams Trigger Record DOJ Action
The U.S. Department of Justice (DOJ) recently moved to seize $225 million in cryptocurrency linked to pig butchering scams — marking one of the largest crypto forfeitures in U.S. history. According to Phil Selden, former acting U.S. Attorney, this case represents a new, victim-centered approach to crypto enforcement.
“This isn’t just about blockchain or finance — it’s about American families losing their life savings,” Selden emphasized.
The DOJ’s aggressive motion was filed without waiting for an arrest, underscoring a commitment to protecting victims before suspects are formally indicted.
A Strategy Shift Under New DOJ Leadership
The seizure is seen as part of a broader DOJ strategy under Matthew Galeotti, the newly appointed head of the criminal division. Galeotti, known for his background dismantling organized crime networks, brings a proactive focus on financial crime that impacts local communities.
Selden noted that Galeotti understands how illicit networks exploit regulatory gaps and hurt real people — not just institutions.
This reflects a shift in the DOJ’s tone: it’s not only targeting the perpetrators but also prioritizing victim restitution and financial recovery.
Heartland Bank Collapse Shows the Real-World Toll
The human cost of crypto scams was exemplified by the 2023 collapse of Heartland Tri-State Bank, a small agricultural lender in Kansas. The bank’s CEO, Shan Hanes, fell victim to pig butchering scammers, allegedly embezzling $50 million and transferring it to crypto wallets.
“If you lose your only bank in rural Kansas, you’re not just losing access to savings — you’re losing the ability to farm, borrow, and do business,” Selden explained.
The DOJ’s complaint lists Hanes as the largest known victim in the seizure case, illustrating the deep local impact of global scams.
What Comes Next: Charges and Crypto Recovery
Selden predicts criminal charges may follow, though extraditing foreign scammers remains complex. Alternatives could include luring suspects to U.S. jurisdictions, such as Guam or Puerto Rico.
Regardless of the arrests, the DOJ’s swift seizure sends a strong message: crypto crimes are real, and victims will not be ignored.
A New Era in Crypto Enforcement
The $225M crypto seizure shows the DOJ is adapting to the digital economy and refocusing on protecting communities and restoring stolen funds.
Crypto fraud is no longer seen as offshore noise — it’s a domestic issue with real consequences.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.