U.S. authorities have initiated proceedings to seize more than $25 million in cryptocurrency connected to international fraud schemes that allegedly defrauded thousands of victims across the United States, Canada, and other countries through fake crypto investment platforms.

The U.S. Attorney's Office for the District of Columbia announced the action on Tuesday following the Justice Department's filing of five civil forfeiture complaints stemming from U.S. Secret Service investigations. The case adds to a growing body of federal enforcement actions targeting cryptocurrency fraud, which the FBI's Internet Crime Complaint Center has identified as one of the fastest-growing categories of financial crime reported by American consumers.

Investigators traced stolen cryptocurrency through blockchain transactions, identifying laundering networks that moved funds across multiple jurisdictions. The investigations form part of the Secret Service's Scam Center Strike Force, which officials said has recovered more than $800 million since its launch in 2025. Authorities indicated that efforts to identify additional suspects and recover more stolen funds are ongoing.

Five Cases Uncover Coordinated Fraud Operations

According to the Justice Department, the five cases exposed separate fraud operations that employed similar methods to launder stolen cryptocurrency.

In one investigation, Canadian authorities alerted U.S. officials in late 2024 to suspicious cryptocurrency wallets linked to illicit transfers. Investigators subsequently traced more than 270 victim transactions and are seeking to forfeit approximately $10.4 million.

A separate investigation centered on online romance scams that allegedly targeted more than 200 victims. Prosecutors said the scammers cultivated relationships with victims before persuading them to invest in fake cryptocurrency platforms, then routed the proceeds through hundreds of digital wallets. This pattern—commonly referred to by law enforcement as "pig butchering" scams—has been identified by the FBI and international agencies as a dominant form of cryptocurrency investment fraud, with criminal networks frequently operating from compounds in Southeast Asia. Authorities are seeking to recover roughly $12.1 million tied to the scheme.

Individual Victim Losses Detailed

Investigators also examined several investment scams reported in 2026. In one case, a victim lost more than $1.2 million after fraudsters ceased all communication when the victim attempted to withdraw funds from what had been presented as a cryptocurrency investment platform. Authorities later connected another victim to the same scheme and froze cryptocurrency worth approximately $2.39 million.

In a separate case, investigators reported that a victim fell prey to a recovery scam after being promised assistance in retrieving cryptocurrency lost in an earlier fraud. Instead of providing help, the scammers demanded additional payments before cutting off contact entirely. Recovery scams represent a well-documented secondary layer of fraud in which operators specifically target individuals who have already reported or publicly disclosed prior losses. Prosecutors are seeking to forfeit approximately $285,000 connected to that scheme.

Authorities Broaden Cryptocurrency Enforcement

U.S. Attorney Jeanine Ferris Pirro stated that the seizures reflected the work of the department's Scam Center Strike Force.

"This $25 million seizure is a direct result of the Scam Center Strike Force I launched in November 2025, and it demonstrates the power of aggressively targeting these international fraud networks," she said.

Investigators noted that many of the laundering operations were based in Southeast Asia and utilized internet addresses linked to China, Malaysia, and Cambodia. The United Nations and human rights organizations have documented large-scale scam operations in the region, where workers are frequently trafficked and forced to carry out online fraud under coercive conditions.

The Justice Department also highlighted other enforcement actions undertaken this year, including the seizure of approximately $61 million in USDT and sanctions targeting cryptocurrency networks tied to Mexico's Sinaloa Cartel.