DOJ Seizes $225.3M in Crypto Fraud Crackdown
- DOJ seizes $225.3 million in cryptocurrency linked to fraud.
- Largest crypto seizure in U.S. Secret Service history.
- Affects over 400 victims globally, targeting retail investors.
The U.S. Department of Justice has launched a major crypto fraud case, seizing $225.3 million involving a blockchain-based investment scam.
This high-profile seizure highlights increasing law enforcement capabilities in handling crypto fraud and the cooperation of industry players like Tether.
DOJ Leads Record $225.3M Crypto Asset Seizure
The U.S. Department of Justice and Secret Service have initiated one of the largest cryptocurrency seizures, marking a pivotal move in their fight against blockchain-based investment fraud.
Through a civil forfeiture action, $225.3 million linked to scams like “pig butchering” was seized. Tether collaborated closely by freezing compromised funds.
“This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history.” – Shawn Bradstreet, Special Agent in Charge, U.S. Secret Service
Seizure Hits 400 Victims, Boosts Crypto Safety
The seizure primarily targeted USDT, with over 400 victims affected worldwide. This decisive action maintains consumer confidence in digital asset safety.
Despite the scale, the impact on broader market metrics or major cryptocurrencies like BTC and ETH appears limited, as the assets were in isolated wallets.
Largest U.S. Crypto Freeze Spurs Regulatory Debate
Previous efforts by the DOJ and Secret Service involved smaller-scale seizures, emphasizing the evolution of regulatory measures. 2024 had $5.8 billion lost to crypto fraud overall.
As the largest freezing action in U.S. history, this case could predictively lead to heightened scrutiny and rapid regulatory advancements, ensuring better asset protection.
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