In a historic crackdown on crypto-related fraud, U.S. federal authorities have moved to seize over $225 million worth of cryptocurrency tied to global investment scams.
Largest Crypto Seizure in Secret Service History
The U.S. Attorney’s Office confirmed that a civil forfeiture complaint had been filed against the funds, calling it the largest crypto seizure ever conducted by the U.S. Secret Service.
“$225.3 million linked to fraudulent investment schemes is being seized,” said a Secret Service spokesperson, highlighting the scale and coordination of the effort.
The operation was carried out in collaboration with the Federal Bureau of Investigation (FBI) and utilized advanced blockchain analysis tools to trace and isolate funds connected to crypto confidence scams.
Crypto Scams Impacting Hundreds Worldwide
Investigators revealed that the targeted digital wallets were part of a global web of deception, used to dupe unsuspecting investors through illicit crypto schemes.
Dozens of U.S.-based victims and over 400 international victims were identified as part of the probe.
The scammers allegedly used thousands of blockchain transactions to obfuscate the origin of stolen assets, making it difficult for victims to trace their lost investments. These tactics included layering funds across multiple wallets and mixing services to conceal digital trails.
Rising Threat: $5.8 Billion in Losses from Crypto Fraud
This seizure is just a fragment of a much larger issue. Crypto-related frauds led to over $5.8 billion in losses globally in 2024, according to federal estimates.
The most common schemes include fake trading platforms, romantic investment traps, and impersonation scams, all designed to manipulate investor trust.
Authorities stress that this is not an isolated action but part of a broader initiative to dismantle criminal networks operating in the digital asset space.
Federal Commitment to Victim Recovery
Interim U.S. Attorney Jeanine Pirro stated that her office is committed to restoring stolen funds to victims while intensifying efforts to pursue foreign and domestic fraudsters.
“Our focus is on seizing criminal proceeds and making victims whole,” said Pirro.
With support from federal law enforcement and executive leadership, this landmark seizure signals a firm stance against digital financial crimes and a growing capability to hold bad actors accountable.
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