The US Department of Justice is seeking the forfeiture of over $25 million in cryptocurrency linked to international romance and investment scams, highlighting the growing threat of crypto-enabled fra
In a significant move against crypto-enabled fraud, the U.S. Department of Justice (DOJ) has filed five civil forfeiture complaints for more than $25 million in cryptocurrencies allegedly tied to various scams targeting victims across Canada and the United States. The assets were recovered through separate investigations by the Cyber Fraud Task Force involving the US Attorney’s Office for the District of Columbia and the U.S. Secret Service's Washington Field Office.
The largest complaint, valued at approximately $12.1 million, is linked to romance schemes that defrauded over 200 victims, with proceeds routed through intermediary addresses and mixed with funds from other scams. Another complaint seeks nearly $10.4 million tied to more than 270 suspected victim transactions, while three smaller cases involve fake investment accounts and a secondary scam offering to recover previously stolen funds.
The DOJ identified the launderers as predominantly located in Southeast Asia, with related IP addresses found in China, Malaysia, and Cambodia. This case underscores the global nature of these scams, which often combine social engineering tactics with fraudulent trading platforms and layered wallet transfers to conceal illicit activities.
This action comes amidst a broader enforcement push against crypto-enabled romance and investment scams. The Interpol-coordinated Operation First Light 2026 involved 97 countries and resulted in the arrest of over 5,811 individuals and the interception of $283 million worth of illicit assets. Thai authorities uncovered a network that allegedly converted romance-scam proceeds into crypto and used cross-chain token swaps to obscure their trail.
The U.S. authorities have also pursued similar schemes. In February, federal agents seized over $61 million in USDT stablecoin from addresses linked to fraudulent investment platforms. These scams typically involve scammers gaining trust through romantic relationships before directing victims to fake trading platforms and moving funds through multiple wallets.
These actions highlight the growing scale of crypto-enabled fraud and the need for continued vigilance among traders and investors. The implications extend beyond just financial losses, as these scams can erode public confidence in cryptocurrencies and digital assets more broadly.
Traders should remain alert to potential red flags such as unsolicited investment opportunities or unexpected requests for personal information. It is crucial to verify the legitimacy of any platform or individual before engaging with them.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.