The U.S. Attorney’s Office has filed a civil forfeiture complaint in the U.S. District Court for the District of Columbia, targeting over $225.3 million in cryptocurrency linked to fraud schemes. The action follows an investigation by the U.S. Secret Service and FBI, which used blockchain analysis to connect these funds to cryptocurrency investment frauds.
The announcement was made by U.S. Attorney Jeanine Ferris Pirro alongside Matthew R. Galeotti from the Justice Department’s Criminal Division, Special Agent Shawn Bradstreet of the U.S. Secret Service's San Francisco Field Office, and FBI Special Agent Sanjay Virmani from the same office.
The complaint claims that a sophisticated money laundering network used numerous transactions to hide the origins of proceeds from fraudulent cryptocurrency investments. This network allegedly dispersed funds across various addresses on the blockchain to obscure their source.
The investigation identified dozens of victims nationwide who lost money believing they were investing legitimately in cryptocurrency, with over 400 suspected victims globally losing millions of dollars.
U.S. Attorney Pirro stated, “Under my leadership, with the support of President Trump and Attorney General Bondi, the U.S. Attorney’s office for the District of Columbia is taking a leading role in the fight against crypto-confidence scams.”
Matthew R. Galeotti added that this action is part of ongoing efforts by the Department to protect Americans from cryptocurrency scams that cost billions annually.
Special Agent Shawn Bradstreet highlighted that this seizure represents "the largest cryptocurrency seizure in U.S. Secret Service history," emphasizing efforts to return funds to victims.
FBI Special Agent Sanjay Virmani noted that these schemes have severe impacts beyond financial losses and praised collaborative efforts in recovering stolen assets.
According to an FBI report, cryptocurrency investment fraud led to more than $5.8 billion in reported losses last year alone.
This case is managed by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with Trial Attorneys Stefanie Schwartz and Ethan Cantor from the Justice Department’s Computer Crime & Intellectual Property Section (CCIPS).
Victims are encouraged to contact the FBI Internet Crime Complaint Center if they believe they have been affected by such scams.
