The U.S. Department of Justice has filed to seize more than $25 million in cryptocurrency allegedly linked to investment and romance scams targeting victims across the U.S. and Canada.
The U.S. Department of Justice (DOJ) has filed five civil forfeiture complaints seeking to seize more than $25 million in cryptocurrency allegedly connected to international investment and romance scams that targeted victims across the United States and Canada.
The action was announced by the U.S. Attorney's Office for the District of Columbia in partnership with the U.S. Secret Service's Washington Field Office. Authorities said the seized cryptocurrency was traced to multiple fraud investigations involving sophisticated laundering networks that moved digital assets through blockchain wallets to conceal illicit proceeds.
According to investigators, the cases form part of a broader crackdown on organized cyber fraud carried out through the DOJ's Scam Center Strike Force, an initiative launched in 2025 to combat cryptocurrency-enabled financial crimes. Since its creation, the task force has helped recover more than $800 million connected to scam operations.
DOJ Files Five Civil Forfeiture Cases
Federal prosecutors filed five separate civil forfeiture complaints in the U.S. District Court for the District of Columbia. The complaints seek ownership of cryptocurrency that investigators believe represents proceeds of fraudulent investment platforms and related laundering operations.
Authorities said Secret Service investigators traced victims' cryptocurrency transactions across multiple blockchain addresses before identifying wallets allegedly connected to international criminal organizations. The funds were subsequently frozen as part of the ongoing investigations.
Officials emphasized that the forfeiture actions are civil proceedings designed to recover assets that may ultimately be returned to victims if the court approves the seizures.
Victims Were Lured Into Fake Crypto Investments
According to the DOJ, thousands of victims worldwide were persuaded to transfer cryptocurrency to fraudulent investment platforms after scammers falsely claimed they were making legitimate investments.
In several cases, victims believed their investments were generating significant returns. However, when they attempted to withdraw funds, the scammers either demanded additional payments or stopped communicating altogether. Investigators later traced portions of the stolen cryptocurrency through complex laundering networks spanning multiple blockchain addresses.
One investigation involved a victim in the Washington, D.C., region who lost more than $1.2 million, while another case sought nearly $2.4 million tied to a fraudulent investment platform that targeted multiple victims.
Romance and Recovery Scams Also Targeted
Officials said the investigations also involved romance-related investment fraud and so-called recovery scams.
In romance scams, criminals establish online relationships through dating platforms, messaging applications, or social media before gradually convincing victims to invest in fraudulent cryptocurrency opportunities. After trust has been established, victims are directed to fake trading platforms that display fabricated profits while preventing withdrawals.
Recovery scams follow a different pattern. Victims who previously lost money are contacted by fraudsters claiming they can recover stolen funds, but only after additional payments or cryptocurrency transfers are made. The promised recovery never occurs, resulting in further financial losses.
Laundering Networks Extended Across Southeast Asia
Investigators said many of the laundering operations linked to the seized cryptocurrency were connected to actors operating in Southeast Asia.
According to the DOJ, investigators identified internet activity and infrastructure associated with locations in China, Cambodia, and Malaysia, highlighting the increasingly international nature of cryptocurrency-enabled fraud. Authorities continue working with domestic and international partners to identify additional suspects involved in the laundering networks.
The department noted that these investigations remain active, and further enforcement actions could follow as additional evidence is collected.
Part of a Broader Anti-Scam Initiative
The latest seizure is part of the DOJ's broader effort to dismantle transnational fraud organizations using cryptocurrency to move illicit funds.
Earlier this year, the Scam Center Strike Force coordinated with private-sector companies during a nationwide "Disruption Week," resulting in millions of fraudulent online accounts being disabled and millions of dollars in cryptocurrency frozen before additional victims could be targeted.
Federal agencies, including the FBI, U.S. Secret Service, IRS Criminal Investigation, Homeland Security Investigations, and several U.S. Attorney's Offices, continue working together to identify fraud networks and recover stolen assets.
What It Means for Crypto Investors
The DOJ's latest action highlights the increasing sophistication of cryptocurrency-related investment scams and the growing ability of law enforcement agencies to trace blockchain transactions despite efforts to obscure stolen funds.
While blockchain technology enables transparent transaction records, scammers frequently use multiple wallet addresses, intermediary transfers, and laundering services to complicate investigations. Authorities say continued cooperation between regulators, law enforcement agencies, blockchain analytics firms, and cryptocurrency companies is helping improve the recovery of stolen digital assets.
The department also encouraged anyone who believes they may have been targeted by cryptocurrency fraud to contact their local U.S. Secret Service office and file a report with the FBI's Internet Crime Complaint Center (IC3).
Conclusion
The DOJ's effort to seize more than $25 million in cryptocurrency represents another major enforcement action against international investment and romance scam networks. By targeting digital assets allegedly tied to fraudulent platforms and complex laundering operations, federal authorities hope to disrupt organized cybercrime while increasing the chances of recovering funds for victims.
As cryptocurrency adoption continues to expand, regulators and law enforcement agencies are placing greater emphasis on combating digital asset fraud, strengthening international cooperation, and pursuing illicit funds across blockchain networks. The latest forfeiture actions demonstrate that tracing and recovering cryptocurrency linked to financial crime remains a growing priority for U.S. authorities.
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