The U.S. Department of Justice has launched legal proceedings to seize more than $25 million in cryptocurrency allegedly connected to international fraud networks that targeted people in the United States and Canada, marking the latest federal action against large-scale digital asset scams operating across borders.
The seizure effort stems from five separate investigations led by the U.S. Attorney’s Office for the District of Columbia. According to the Justice Department, the cases involve stolen or fraud-linked cryptocurrency traced through complex laundering networks that moved funds across numerous digital wallets and platforms in an effort to hide their origin.
Federal authorities said agents with the U.S. Secret Service’s Washington Field Office, working through the Cyber Fraud Task Force, identified thousands of victims around the world. Many were allegedly persuaded to deposit money into fraudulent online schemes that promised trading gains, romantic relationships, account recovery help, or other financial opportunities.
The Justice Department said the forfeiture actions are part of a broader campaign to disrupt global cyber fraud networks that use cryptocurrency to collect, move, and conceal stolen funds. If the court grants the government’s requests, the seized assets could eventually be returned to eligible victims through a legal remission or restoration process.
The cases also show how digital asset fraud has become a major law enforcement priority as criminals increasingly use online messaging, fake platforms, and international laundering routes to reach victims far beyond their own borders.
Five investigations tied to global fraud networks
The first of the five cases was flagged by Canadian authorities in late 2024. That investigation involved about 270 cryptocurrency transactions and nearly $10.4 million in digital assets, according to details released by the Justice Department.
A second case centered on online romance fraud schemes. Authorities said that investigation identified more than 200 victims and roughly $12.1 million in cryptocurrency. Romance scams often begin with friendly contact on social media, dating apps, or messaging platforms. Over time, the person behind the scheme builds trust before steering the victim toward a fake financial opportunity or direct transfer request.
Three additional forfeiture cases were filed later. Two cases filed in March and May 2026 involved victims across the National Capital Region and sought the seizure of about $1.2 million and $2.4 million, respectively. A fifth investigation focused on a recovery-fee scheme and targeted about $285,000 in seized cryptocurrency.
Recovery-fee scams often target people who have already lost money in a prior fraud. In these schemes, criminals claim they can help recover stolen cryptocurrency, but first demand an upfront payment or access to wallet information. Victims may be misled into believing they are dealing with law enforcement, a law firm, a private recovery company, or a technical expert.
Federal authorities said the five cases are separate but connected by similar patterns: victims were deceived online, funds were converted into cryptocurrency, and the assets were moved through digital laundering networks designed to complicate tracing efforts.
Secret Service traced laundering activity
The Justice Department said the Secret Service’s Washington Field Office played a central role in identifying the cryptocurrency at issue. Agents working through the Cyber Fraud Task Force traced funds across blockchain transactions and linked digital wallets to broader laundering networks.
Unlike traditional bank transfers, many cryptocurrency transactions are recorded on public blockchains. That visibility can help investigators follow the movement of funds, but criminals often try to obscure the trail by using many wallets, rapid transfers, cross-chain swaps, mixers, false identities, and accounts opened through third parties.
Authorities said the laundering activity in these cases originated mostly in Southeast Asia. Digital traces were linked to operations in China, Malaysia, and Cambodia, according to the department. Law enforcement has repeatedly warned that large fraud centers in the region use a combination of online deception, human trafficking, forced labor, and money laundering to carry out scams at industrial scale.
The Justice Department did not say that all people involved in the movement of the funds have been identified or arrested. Civil forfeiture actions can be used to seize property that prosecutors say is tied to criminal activity, even while broader investigations continue.
In such cases, the government must show that the assets are subject to forfeiture under federal law. People or entities claiming a legitimate interest in the property may challenge the seizure in court.
Part of the scam center strike force
The forfeiture actions fall under the Scam Center Strike Force initiative, a program launched in November 2025 by U.S. Attorney Pirro. The initiative focuses on cyber-enabled fraud networks, especially those operating from overseas scam centers that target people in the United States.
The Justice Department said more than $800 million in cryptocurrency assets have so far been recovered through coordinated enforcement efforts tied to the strike force. That figure reflects the scale of fraud-linked digital asset activity now being pursued by federal agencies.
The strike force model brings together prosecutors, federal agents, analysts, and partner agencies to identify fraud networks, freeze assets, and pursue criminal or civil actions. Such coordination is seen as important because the schemes often cross multiple jurisdictions and involve victims, suspects, digital wallets, bank accounts, and online infrastructure spread across different countries.
U.S. officials have said these investigations often require cooperation with foreign governments and private companies. Blockchain analysis can identify the movement of funds, but law enforcement generally needs legal orders, platform cooperation, or international assistance to freeze or seize assets held through service providers.
Fraud losses have surged
The latest seizure action comes as cyber fraud complaints involving cryptocurrency continue to rise sharply. A report published by the Federal Bureau of Investigation in April 2026 said virtual asset-related scams drained more than $11 billion from victims.
The FBI has repeatedly warned that cryptocurrency fraud can take many forms, including fake trading platforms, impersonation schemes, romance scams, employment scams, phishing attacks, and fraudulent recovery services. In many cases, victims are contacted through ordinary online spaces such as text messages, encrypted chat apps, dating services, social media platforms, and professional networking sites.
One common method is often referred to by law enforcement as “pig butchering,” a term used to describe long-running grooming schemes in which fraudsters slowly build trust before encouraging a victim to move money into a fraudulent platform. The victim may be shown fake account balances and fake profits. The scheme can continue until the person attempts to withdraw funds, at which point the platform may demand fees, taxes, penalties, or additional deposits.
These scams can be especially damaging because they often unfold over weeks or months. Victims may believe they are in a personal relationship, a business partnership, or a guided trading arrangement. By the time they realize the platform is fake, the money may have been moved through many wallets and converted into other assets.
The Justice Department’s latest cases appear to include several of these patterns, including romance fraud, fake financial opportunities, and recovery-fee fraud.
Scam compounds remain a major concern
Authorities and human rights groups have also raised alarm about organized scam compounds in parts of Southeast Asia, including areas of Burma and Laos. These compounds are often described as heavily controlled facilities where workers are forced or coerced into running online fraud schemes.
In some reported cases, people are lured by false job advertisements promising customer service, technology, or marketing work. After arriving, they may have their documents taken and be forced to contact victims online. Some accounts describe threats, physical abuse, debt bondage, and restrictions on movement.
Law enforcement agencies have said this forced-labor dimension makes the fraud ecosystem more complex. The people sending scam messages may themselves be victims of trafficking, while the organizers, financiers, guards, recruiters, and laundering networks profit from the operations.
The Justice Department’s announcement said laundering activity connected to the latest forfeiture actions was traced largely to Southeast Asia. It did not provide full operational details about the groups involved, but the regional links fit a broader pattern identified in cyber fraud investigations over the past several years.
Digital tracing has become central to enforcement
The seizure proceedings highlight the growing role of blockchain tracing in financial crime cases. Cryptocurrency transfers can move quickly and across borders, but many major blockchains create public records that can be analyzed by investigators.
That does not mean recovery is easy. Criminal networks often move funds through layered transactions, decentralized services, intermediary wallets, and accounts controlled through false identities. Assets can also be converted into different cryptocurrencies or moved through services in jurisdictions that may not respond quickly to U.S. legal requests.
Still, federal agencies have become more active in using blockchain records, subpoenas, seizure warrants, and cooperation from compliant service providers to identify and freeze fraud-linked assets. The Justice Department’s statement that more than $800 million has been recovered through the strike force suggests that these tools are now a core part of cyber fraud enforcement.
For victims, however, recovery can still be slow and uncertain. Stolen assets may be depleted, converted, transferred beyond reach, or held by unknown parties. Even when funds are seized, a court process is usually required before money can be returned.
Private companies join disruption efforts
Private technology companies are also playing a growing role in efforts to disrupt international fraud networks. During a recent coordinated action known as Disruption Week, major tech firms voluntarily blocked millions of fake profiles and froze another $3.8 million in suspicious virtual funds, according to information cited in connection with anti-fraud efforts.
Fake profiles are a critical tool for scam networks. They are used to initiate contact, impersonate real people, create fake romantic interest, promote false financial platforms, and make fraudulent businesses appear legitimate. Removing those accounts can reduce the number of people exposed to scam attempts, though fraud groups often create new accounts quickly.
Freezing suspicious funds can also interrupt criminal operations, particularly when assets pass through platforms that apply compliance controls. But many scams rely on speed. Once victims send funds, the assets may be moved through multiple wallets in minutes or hours.
That is why law enforcement agencies continue to urge people to treat unexpected online financial opportunities with caution, especially when the contact begins through a direct message, dating app, text message, or social media account.
How people can reduce risk
Authorities advise the public to be skeptical of anyone who makes sudden contact online and quickly shifts the conversation toward money, cryptocurrency, trading, or account recovery. A person who refuses video calls, claims to have exclusive trading knowledge, pressures for quick deposits, or promises guaranteed returns should be treated with suspicion.
Before connecting a wallet or sending funds, users should carefully check the exact web address of any financial platform. Fraudulent websites often imitate real companies but use slightly altered spellings, unusual domains, or links sent through private messages. Searching independently for a company’s official website is safer than clicking a link provided by someone online.
People holding digital assets for long periods may also reduce exposure by using offline hardware wallets and strong security practices. Hardware storage can help protect funds from remote compromise, but it does not prevent losses if a user is tricked into approving a malicious transaction or sending assets to a scam address.
Anyone who believes they have been targeted should stop communicating with the suspected scammer, preserve messages and transaction records, and report the matter to law enforcement. In the United States, complaints can be filed with the FBI’s Internet Crime Complaint Center. Victims should also be cautious of anyone who later claims they can recover lost funds for a fee.
The Justice Department’s latest seizure effort underscores the expanding scale of cryptocurrency fraud and the increasing focus by U.S. authorities on recovering stolen digital assets. While the court proceedings are still ongoing, the cases show how international fraud networks, online deception, and digital laundering have become closely linked in one of the fastest-growing areas of financial crime.
Want to stay safer from crypto scams? Read our guide on safer and better trading tips to protect your assets.
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