Authorities Seize Over $25M in Cryptocurrency Crackdown on Investment Scams

U.S. authorities launched an enforcement action targeting international fraud operations. The body is now seeking more than $25 million in crypto-connected scams.

In a report released by the U.S. Attorney’s Office for the District of Columbia, investigators from the U.S. Secret Service’s Washington Field Office worked through the Cyber Fraud Task Force to trace laundering operations that helped move stolen crypto through overseas networks.

Victims were convinced to send money to what they thought were legitimate crypto investment platforms. However, the funds were channelled through international laundering systems.

Scam investigations reveal thousands of victims

The report showed that five different investigations were conducted. The highest-profile investigation began in late 2024. Canadian authorities had alerted U.S. officials about suspicious activity linked to cross-border fraud. 

After that, the investigators identified more than 270 suspected victim transactions connected to the scheme. DOJ is now seeking about $10.4 million in crypto linked to the case.

There was another scam involving online romance fraud. Prosecutors said at least 200 victims were convinced to invest money into fake crypto opportunities. This was after the scammers built trust with victims online. Authorities are seeking $12.1 million connected to that operation alone.

Other cases involved victims in the Washington, D.C., region. One in March 2026 was worth about $2.4 million. Another reported in May was $1.2 million.

A fifth scheme also happened. The scammers tried to use the guise of recovery services. Victims who had already lost money were asked to pay additional fees to recover their stolen assets. The U.S. DOJ is also pursuing around $285,000 linked to that operation.

It is worth noting that many of these laundering operations were based in Southeast Asia. The Justice Department said that internet activity was traced to China, Malaysia, and Cambodia.

Strike force expands recovery efforts

The seizures are part of a campaign led by the Scam Center Strike Force. This body was launched in November 2025 by U.S. Attorney Jeanine Ferris Pirro.

The task force has recovered over $800 million linked to international fraud operations since it was created. Officials say this helps the government catch fraudsters and also disrupt the networks they use to move stolen money around.

“Our investigators cut through complex laundering schemes, protected victims, and shut down criminal pipelines. We will continue to identify these actors, dismantle their operations, and bring them to justice,” he said.

The recovered assets will go through civil forfeiture proceedings. If the courts approve the forfeitures, eligible victims would be able to seek compensation.

Pirro added that the investigations are still ongoing and encouraged victims to reach out to the team for assistance.

“These investigations are far from over, and we encourage anyone who thinks they may be a victim of these scams, or similar cryptocurrency crimes, to contact us.”

This crackdown comes after other similar actions taken by federal authorities over the past year. For example, earlier in 2026, prosecutors in Massachusetts sought to recover 328,000 USDT connected to another romance-investment fraud case. 

Court documents showed that a victim was convinced through a dating app to invest in fake crypto coins before the funds were moved through a bunch of blockchain wallets. Federal investigators eventually traced the transactions and seized wallets connected to the operation.