US Officials Seize $225 Million in Crypto Scam Crackdown

In a massive win against online fraud, the US Department of Justice (DOJ) has seized over $225 million in cryptocurrency linked to fake crypto investment schemes - the largest cryptocurrency seizure in the history of the US Secret Service.

The DOJ filed a civil forfeiture complaint (a legal action to take control of illegally obtained assets) against the crypto funds, which were tied to cryptocurrency confidence scams or fraudulent schemes that trick people into “investing” in fake crypto platforms, according to a press release.

Here’s how it typically works:

1. Scammers gain your trust, often posing as potential love interests or financial experts online.
2. They persuade you to transfer funds into what looks like a legitimate crypto investment.
3. Your money disappears into a complex web of accounts designed to obscure its trail.

This particular crypto laundering network used hundreds of thousands of transactions to spread and hide stolen money, making it extremely difficult to trace. But law enforcement used blockchain analysis tools to untangle the web.

Over 400 victims are believed to have been impacted, and some lost life-changing amounts of money. According to the FBI’s 2024 Internet Crime Report, crypto investment scams inflicted more than $5.8 billion in reported losses last year alone.

These scams are more than just numbers – they devastate lives. Victims think they’re making smart investments or even helping someone they care about. Instead, they’re left with empty accounts and a painful lesson.

“Today’s civil forfeiture complaint is the latest action taken by the Department to protect the American public from fraudsters specializing in cryptocurrency-based scams, and it will not be the last,” Matthew R. Galeotti, Head of the Justice Department’s Criminal Division said.

“These schemes harm American victims, costing them billions of dollars every year, and undermine faith in the cryptocurrency ecosystem. Our investigators and prosecutors are relentlessly pursuing these scammers and their ill-gotten gains, and we will relentlessly pursue recovery of victim funds,” he added.

How to Stay Safe from Crypto Scams

Cryptocurrency confidence scams often start in ways that seem harmless, like notes on social media platforms or dating apps, or unsolicited messages promising big returns. Here’s how to protect yourself:

• Be skeptical of too-good-to-be-true investment offers or promotions, especially from strangers or any new online acquaintance.
• Don’t trust anyone who tells you to invest in crypto on unfamiliar platforms. If you’re asked to download software or visit a link, stop and verify.
• Use tools like Bitdefender Scamio—a free AI-powered chatbot that helps you check whether a message (even cryptocurrency investment proposals), website, or email are part of a scam.
• Double-check links with Bitdefender Link Checker before clicking (also free). Many scam platforms use fake websites that mimic legitimate ones.
• Report suspicious activity to the FBI at www.ic3.gov. If you think you may be a victim of one of the scams in this case, use the code “BT06182025” in your complaint.

You may also want to read:

·         How to Dodge the Wave of Crypto Scams

·         The 7 signs of an investment scam and what to check before parting your money

·         Do You Make $5,000 a Week? These Investment Scammers Sure Want To

·         Decoding Scams: A Comprehensive Guide to Types, Tactics, and Prevention