U.S. authorities seek to confiscate $163 million tied to large-scale cryptocurrency scam
The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint aiming to seize approximately $163 million in cryptocurrency suspected to be proceeds from a sophisticated investment fraud scheme known as “pig-butchering.” This case provides an intricate look into how criminals exploit social engineering tactics to conduct large-scale crypto scams.
Background of the case
The complaint, lodged by the U.S. Attorney’s Office for the District of Columbia, targets funds held in multiple cryptocurrency wallets across various blockchain networks. These assets are believed to be the product of an extensive money laundering operation involving fake investment platforms that trick victims into depositing cryptocurrencies under false pretenses of profitable returns.
Understanding ‘pig-butchering’ scams
“Pig-butchering” refers to a scam methodology where fraudsters cultivate trust with victims over extended periods, often via social media or messaging apps, before convincing them to invest in fraudulent cryptocurrency platforms. Victims see fabricated growth in their supposed investments and are later blocked from withdrawing funds or subjected to bogus fees, effectively stealing millions globally.
Scale and investigation cooperation
More than 430 suspected victims have been identified worldwide, with at least 60 confirmed in the United States. The investigation marks one of the largest seizures in U.S. history related to crypto scams. It involved collaborative efforts from the U.S. Secret Service and the FBI, with assistance from cryptocurrency exchanges such as Tether and OKX, which helped freeze the suspect assets.
Wider context of cryptocurrency fraud enforcement
This case builds upon previous landmark seizures, including a $225 million cryptocurrency seizure earlier in 2025 related to similar confidence scams. Such actions underscore increasing law enforcement focus on dismantling cryptocurrency fraud networks that exploit emerging digital asset technologies for illicit gain.
Implications for investors
The unfolding enforcement measures highlight the critical need for individuals to exercise caution when approached with cryptocurrency investment opportunities, particularly those promising unrealistic returns or requiring deposits on unverified platforms. Regulatory authorities continue to improve detection and response capabilities to safeguard the public and the integrity of digital financial systems.
Next steps in the legal process
The DOJ’s civil forfeiture complaint sets the stage for further legal proceedings intended to permanently confiscate the targeted assets. Efforts to identify additional perpetrators and protect affected victims remain ongoing, reflecting the complexity and global scale of cryptocurrency investment fraud schemes.