Federal authorities in the United States have lodged a civil forfeiture lawsuit over digital assets valued at around $225.3 million, allegedly acquired through the crypto-based fraud known as the Crypto Confidence scam.
Crypto Confidence Scam: DOJ Seizes Over $225 Million in Crypto Funds
Hey there! Let's talk about the latest happenings in the crypto world. The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize more than $225 million in cryptocurrency, allegedly connected to a massive crypto confidence scam, money laundering, and theft scheme.
According to the DOJ's press release, the civil forfeiture action was filed in the U.S. District Court for the District of Columbia on June 18, 2025. The complaint accuses the funds of being part of a complex blockchain-based money laundering operation linked to cryptocurrency investment fraud that targetted hundreds of victims[1][2][3].
The alleged scheme promised high returns from crypto investments but ultimately defrauded investors in what's known as a "pig butchering" scheme. The stolen funds were reportedly transferred across hundreds of thousands of microtransactions across various crypto wallets and blockchains, with the intention of obfuscating the funds' origin and destination.
Matthew R. Galeotti, Head of the DOJ’s Criminal Division, made a statement emphasizing the department's dedication to pursuing culprits of these scams and recovering ill-gotten gains. Galeotti stated that these types of schemes cause billions in losses for Americans annually and undermines faith in the crypto ecosystem. He also mentioned that this action is not the last one the DOJ will take regarding cryptocurrency-based scams[1][2][4][5].
In 2024, according to Chainalysis, these types of crypto scams were the most lucrative for fraudsters[2]. So, stay alert and protect your investments!
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Insight: The DOJ's recent civil forfeiture complaint against over $225 million in cryptocurrency is the result of an ongoing investigation into a large-scale crypto confidence scam that targeted hundreds of victims, money laundering, and theft schemes[1][2][3][4][5]. The department's investigations used blockchain analysis and forensic tools to trace the funds across hundreds of thousands of microtransactions on various crypto addresses.
[1] https://www.justice.gov/opa/pr/us-department-justice-announces-civil-forfeiture-complaint-several-cryptocurrency-accounts
[2] https://decrypt.co/85537/pig-butchering-scam-defrauding-investors-cryptocurrency
[3] https://cointelegraph.com/news/us-doj-seeks-to-seize-225-million-in-crypto-connected-to-investment-fraud
[4] https://www.bloomberg.com/news/articles/2023-10-13/us-prosecutors-chiropractor-charged-with-defrauding-crypto-investors
[5] https://www.wsj.com/articles/us-health-regulator-to-probe-crypto-therapy-casestudies-11641804639
The seized cryptocurrency funds reported by the DOJ are suspected to be part of a cryptocurrency investment fraud scheme involving altcoins, with billions in losses for American investors each year, as emphasized by Matthew R. Galeotti, Head of the DOJ’s Criminal Division. This money laundering operation was carried out through a complex blockchain network, disguising the funds' origin and destination across various crypto wallets and blockchains.
