US DOJ Moves to Seize Record $225M Linked to ‘Pig Butchering’ Crypto Scams

Highlights:

• DOJ moves to seize $225M in USDT linked to major global crypto fraud.
• Over 400 victims lost millions in fake crypto schemes, DOJ plans full compensation.
• FBI reports $9.3B lost to crypto scams last year, mostly from fake investment scams.

The United States Department of Justice (DOJ) is asking the court for approval to seize roughly $225 million in USDT, which is currently held in various cryptocurrency addresses. These funds are allegedly linked to a large-scale international criminal operation that targeted victims both in the United States and abroad through fraudulent schemes.

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Today, Matthew R. Galeotti of @DOJCrimDiv announced a civil forfeiture complaint to seize $225.3M in cryptocurrency tied to investment fraud & money laundering. The funds were traced through a sophisticated blockchain network used to scam 400+ suspected victims. pic.twitter.com/pBEN8Mjrfd

— Criminal Division (@DOJCrimDiv) June 18, 2025

DOJ Plans to Return Millions Seized from Fake Crypto Schemes to Victims

A civil complaint filed on June 18 did not provide full details of the scam. It stated that fake crypto investment schemes likely defrauded over 400 people and cost them millions. The U.S. Attorney for the District of Columbia, Jeanine Pirro, stated that the government plans to use the seized cryptocurrency to repay the victims affected by the fraud.

The criminals moved the illegal money through a large and complex network of crypto wallets, including several accounts on the OKX exchange. They used many careful blockchain transactions to hide where the money came from and to make sure it was not easy to trace or detect by authorities. The U.S. Secret Service and the Federal Bureau of Investigation began their investigation after OKX and Tether noticed a number of suspicious transactions.

Tether said the seized crypto was tied to a “pig butchering” scam. The U.S. Department of Justice thanked the company for its assistance. In such scams, fraudsters build trust over time and convince victims to send increasing amounts of money. Investigators were able to trace and freeze the stolen funds. The U.S. Marshals Service now holds these funds. The DOJ aims to return the money to the scam victims.

DOJ Warns of Rising Crypto Scams as Losses Reach $9.3 Billion

Matthew Galeotti from the DOJ mentioned that the complaint reflects ongoing efforts to fight crypto fraud. He said the FBI found that people lost over $9.3 billion in 2024, including $5.8 billion from fake crypto investments. Scammers used many small transactions to hide the stolen money. They tricked people into thinking the investments were real and took their money.

The DOJ noted that this step is part of broader efforts to disrupt global crime networks targeting vulnerable investors, especially older individuals. Matthew Galeotti noted that these scams not only hurt individuals but also damage public confidence in the crypto sector. 

Jeanine Pirro emphasized that her office remains committed to fighting cryptocurrency fraud and protecting the public. She said they are getting help from President Trump and Attorney General Bondi. They are working with law officers to take back stolen money from foreign scammers and give it back to the victims.

On the same day, the Department of Justice released the complaint while New York authorities announced another case, seizing $140,000 and freezing $300,000 tied to a crypto scam involving fake social media ads. This particular scheme defrauded over 300 victims and led to losses exceeding $1 million.

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