U.S. authorities have filed a civil forfeiture lawsuit to seize over $225.3 million in crypto assets. According to the Office of the U.S. Attorney for the District of Columbia, the funds were linked to a major cryptocurrency investment fraud scheme. Investigators believe the assets belong to a network involved in laundering money through hundreds of thousands of blockchain transactions.
Tens of Thousands of Transfers and Thousands of Victims
According to the case materials, the investigation was led by the FBI and the U.S. Secret Service in San Francisco. They identified crypto wallets that processed millions of dollars obtained by deceiving investors. Victims believed they were investing in legitimate crypto projects, but in reality, fake platforms were mimicking genuine operations, and the funds were redistributed across numerous linked addresses to obscure their origins.
The investigation has confirmed dozens of victims within the U.S., and authorities suspect more than 400 victims globally. The losses are estimated in the millions of dollars.
FBI: Crimes Are Systemically Damaging Trust in the Crypto Market
FBI Special Agent Sanjay Virmani, based in San Francisco, emphasized that such schemes not only cause financial harm but also long-term psychological trauma for victims. He thanked the team for helping deliver justice and stated that the Bureau would continue fighting cyber fraud.
Secret Service agent Shawn Bradstreet said this was the agency’s largest cryptocurrency seizure in history. He pointed out that the fraudsters exploited user trust and left many in serious financial distress.
Prosecutors Increase Pressure on the Crypto Sector
Federal prosecutor Jeanine Pirro, appointed under President Donald Trump, declared that her office intends to lead the fight against "crypto trust" schemes that disguise themselves as investment opportunities. She stated that the authorities would seek to return funds to victims and pursue the confiscation of assets located abroad.
Matthew R. Galeotti, head of the U.S. Department of Justice’s Criminal Division, called the case “another step in protecting Americans from crypto fraud.” He noted that in 2024 alone, victims reported over $5.8 billion in losses to such scams, according to the FBI Internet Crime Complaint Center.
Role of Tether and Next Steps
The Department of Justice thanked Tether for its active assistance in the investigation. According to the agency, the cryptocurrency involved in the case was held in wallets linked to stablecoins.
The case is being led by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with staff from the DOJ’s Computer Crime and Intellectual Property Section.
Citizens who suspect they may have been victims of similar schemes are encouraged to contact the FBI’s Internet Crime Complaint Center and include reference code BT06182025 in their report.
Impact on the Cryptocurrency Market
A seizure of this magnitude could impact the crypto market both in the short and long term. In the near future, increased scrutiny and regulatory pressure are likely to affect unregulated platforms and tools, especially those tied to stablecoins. Investors may temporarily reduce activity amid concerns over further investigations and restrictions.
However, strategically, the government’s actions reinforce the direction toward order and regulation in the industry. This could accelerate the passage of new legislation and increase trust in compliant crypto companies. This development is particularly relevant as the U.S. Congress continues to advance the GENIUS Act, a bill aiming to establish official rules for issuing and handling stablecoins.
Previously, Trump signed an executive order creating two national reserves: the Strategic Bitcoin Reserve and the Digital Asset Stockpile. These institutions are intended to manage seized crypto assets as part of the country’s digital asset strategy. Therefore, the confiscated $225.3 million may be directed into these reserves.
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