U.S. DOJ Moves to Seize $25 Million in Crypto Linked to Fraud Schemes

U.S. DOJ Targets $25 Million in Crypto Linked to Fraud

The U.S. Department of Justice (DOJ) is seeking to forfeit over $25 million in cryptocurrency linked to a series of international fraud investigations. These investigations uncovered fraudulent activities involving false investment schemes and romance scams that have victimized individuals in both the United States and Canada.

Summary of Investigations

This latest forfeiture action is part of a broader initiative that has successfully recovered more than $800 million through various operations targeting fraudulent crypto activities. According to the DOJ, the significant recovery results from investigations led by the Cyber Fraud Task Force, including multiple money laundering networks that have exploited unsuspecting victims across the globe.

Key Findings

Five separate investigations were highlighted, each revealing distinct fraud operations but sharing similar patterns of illicit financial activity. Notably, the most extensive case was initiated following a tip-off from Canadian authorities concerning suspicious cross-border fraud linked to cryptocurrency investment scams. The DOJ has identified more than 270 suspected transactions associated with this scheme, which has prompted efforts to seize approximately $10.4 million in cryptocurrency.

Another investigation, primarily focused on romance scams, has resulted in prosecutors seeking to recover about $12.1 million. In this operation, over 200 victims were allegedly misled into believing they were participating in legitimate investment opportunities.

Additional Cases Under Review

Furthermore, additional separate complaints have emerged regarding three other investigations reported by victims, including a case in May 2026 aiming to recover roughly $1.2 million and another in March 2026 targeting approximately $2.4 million. A fifth investigation involving a fee-based recovery scam seeks nearly $285,000 in crypto.

International Fraud Networks

Authorities noted that the laundering operations related to these fraud cases were predominantly based in Southeast Asia, with IP addresses from China, Malaysia, and Cambodia being frequently associated with these scams. This reinforces the ongoing challenges of tracking and recovering stolen funds in a global digital landscape.

Jeanine Ferris Pirro, the U.S. Attorney leading the initiative, emphasized that the latest seizures underscore the importance of dismantling laundering networks rather than solely focusing on the fraudulent schemes. “Investigators have made significant strides in protecting victims and disrupting financial channels used for illicit activities,” said Pirro.

Implications for Victims

As the forfeiture process unfolds, recovered digital assets are expected to be returned to eligible victims, pending legal ownership claims being resolved. The DOJ’s efforts are part of a continued commitment to targeting cryptocurrency linked to online scams and enhancing the administration of justice in digital asset cases.

In a related context, investigations have expanded beyond investment fraud, including cases involving cryptocurrency linked to ransomware attacks, further illustrating the DOJ’s proactive stance in addressing the complexities of cyber fraud.