DOJ Seizes $225M – Largest Crypto Scam Bust Ever, 400+ Victims Targeted

The U.S. Department of Justice (DOJ) has moved to seize $225.3 million worth of Tether’s USDT, marking the largest crypto seizure tied to an alleged “pig butchering” investment scam.

The operation is part of an ongoing crackdown on cryptocurrency-related fraud, which officials say has defrauded more than 400 victims.

According to the DOJ, the funds were traced through a web of blockchain transactions that linked them to an international confidence scam.

The investigation revealed that the stolen assets were laundered through the crypto exchange OKX before being consolidated into wallets holding Tether’s stablecoin.

“Today’s civil forfeiture complaint against over $225 million worth of cryptocurrency is the Department’s latest action in our ongoing fight against cryptocurrency fraud schemes,” said Matthew Galeotti, head of the DOJ’s Criminal Division.

Today, Matthew R. Galeotti of @DOJCrimDiv announced a civil forfeiture complaint to seize $225.3M in cryptocurrency tied to investment fraud & money laundering. The funds were traced through a sophisticated blockchain network used to scam 400+ suspected victims. pic.twitter.com/pBEN8Mjrfd

He added that the FBI estimates that over $9.3 billion in crypto-related losses were reported in 2024 alone, with $5.8 billion tied directly to fraudulent investment schemes.

The complaint alleges that the perpetrators of the scam used thousands of transactions to obscure the movement of stolen funds. Victims were lured with what they believed were legitimate crypto investment opportunities, only to lose their money to well-coordinated fraud rings.

The seized funds, held entirely in USDT, represent the largest amount ever tied to a single crypto scam case.

The DOJ said this action is part of a broader strategy to disrupt transnational criminal networks that target vulnerable investors, particularly older adults.

“These schemes harm American victims and undermine investor confidence in the cryptocurrency ecosystem,” Galeotti said.

The case follows a string of similar actions by federal authorities. Just last week, the DOJ announced guilty pleas from five people who laundered more than $36 million through a Cambodia-based scam.

Last month, another federal court ordered the forfeiture of $2.5 million in crypto tied to a similar operation.

U.S. Attorney Pirro and other federal officials emphasized the personal and financial toll of these scams. Many victims, they noted, were older adults who lost life savings after being targeted online.

“The impact of these schemes on their victims can be devastating,” said Galeotti. “This impact is compounded many times over by the scale of these schemes.”

The DOJ urged the public to stay alert and learn how to spot fraudulent investment tactics.

Galeotti pointed to the FBI’s online resources for identifying red flags, especially unsolicited investment offers or strangers offering quick returns via social media.

“This is not the first action we’ve taken—and it will not be the last,” he said. “We will use every tool at our disposal to ensure these crimes do not pay and to bring perpetrators to justice.”

The DOJ has not yet announced charges against specific people tied to the $225 million seizure, but investigations are ongoing.

The DOJ’s $225 million seizure follows a wider crackdown on crypto-linked fraud, with U.S. authorities intensifying enforcement in 2025 as digital scams hit new highs.

Just last month, prosecutors filed charges against Jeremy Jordan-Jones, the self-proclaimed CEO of a blockchain firm called Amalgam.

He allegedly defrauded investors of over $1 million through false claims of major partnerships with sports teams and payment platforms. Instead, the funds were reportedly used to bankroll a lavish lifestyle.

“Jordan-Jones’s alleged blatant lies funded his personal lifestyle at the expense of unknowing victims,” said FBI assistant director Christopher Raia.

On a broader scale, the DOJ recently unsealed an indictment against Rustam Rafailevich Gallyamov, a Russian national accused of creating and deploying the Qakbot malware.

The DOJ seized over $24 million in crypto from Gallyamov, who allegedly ran a global botnet used to launch ransomware attacks.

The FBI says crypto fraud is rising at an alarming pace. Its latest IC3 report shows $9.3 billion in crypto-related losses in 2024 alone, a 66% increase from the year before. Ransomware remains the top threat to U.S. infrastructure.

The FBI recorded $9.3 billion losses spread across various crypto-related investment scams, extortion, ATM and kiosks, among others, in 2024.#FBI #CryptoFraud #CryptoScamhttps://t.co/1Eb8KStAHk

FBI officials confirmed that more 5,400 people have been notified since January 2024 after being unknowingly targeted in crypto scams.

“Cryptocurrency has become an enticing means to cheat investors,” said FBI operations director Chad Yarbrough.

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