The Department of Justice has filed a civil complaint seeking to seize approximately $225.3 million in cryptocurrency connected to elaborate crypto investment scams. The complaint, filed in the US District Court for the District of Columbia, details how the DOJ traced funds from over 400 victims linked to a blockchain-based money laundering network involved in “pig butchering” scams—a form of confidence fraud often involving fake romantic relationships to lure victims into bogus crypto investments. The US Secret Service and FBI identified seven groups of Tether stablecoin accounts tied to the scam. Notably, the DOJ was alerted by Tether and the crypto exchange OKX about suspicious accounts laundering illegally obtained funds through complex transactions. Victims include Shan Hanes, a former bank president sentenced for embezzlement related to these scams. The FBI estimates that crypto investment fraud resulted in $5.8 billion in losses in 2024. Proceeds from the seizure will be used to compensate victims, and excess funds may support a US cryptocurrency reserve.
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