US Justice Department Seizes $580 Million in Crypto Linked to Transnational Fraud

The United States Department of Justice has frozen, seized and initiated forfeiture proceedings for more than $578 million in digital assets allegedly tied to Chinese transnational criminal organizations. The enforcement actions were carried out over a three-month period by the District of Columbia’s Scam Center Strike Force, a unit established in November under US Attorney Jeanine Pirro.

According to officials, the funds were connected to crypto related fraud schemes targeting US residents through websites and social media platforms. Authorities said the goal is to pursue legal forfeiture and return recovered assets to victims wherever possible.

Crypto Scam Activity Surges in 2025

The seizures come amid a sharp rise in crypto related scams. Data from Chainalysis indicates impersonation scams involving digital assets increased by roughly 1,400% year over year in 2025, while the average amount stolen per incident rose by approximately 600%.

Separately, estimates suggest US authorities collectively hold significant Bitcoin reserves from prior criminal cases, though officials have not detailed current totals. The latest enforcement push underscores intensifying scrutiny of cross-border crypto fraud networks and digital asset crime.

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.