The U.S. government has seized $225 million in what officials are calling the largest-ever recovery of funds stolen through a cryptocurrency investment scam, the Department of Justice announced on Wednesday.
In a joint operation involving the FBI and the U.S. Secret Service, investigators traced the stolen funds using advanced blockchain analysis and other forensic techniques. The funds were linked to an international fraud scheme that tricked hundreds of individuals into believing they were investing in legitimate cryptocurrency ventures.
According to the U.S. Attorney’s Office, more than 400 victims worldwide, including dozens in the United States, were targeted in the elaborate con, which operated across a complex, blockchain-based money laundering network. The scammers executed hundreds of thousands of transactions to obscure the origin and ownership of the illicit funds.
“These scams prey on trust, often resulting in extreme financial hardship for the victims,” said Shawn Bradstreet, Special Agent in Charge of the U.S. Secret Service’s San Francisco Field Office.
While no arrests were confirmed in the statement, officials expressed hope that the recovered funds could eventually be returned to their rightful owners.
The scale of the seizure underscores the growing threat posed by cryptocurrency investment fraud, which U.S. authorities say accounted for more than $5.8 billion in reported losses in 2024 alone.
