The Department of Justice filed a civil forfeiture complaint against more than $225.3 million in the U.S. District Court for the District of Columbia related to cryptocurrency scammers involved in investment fraud and money laundering. File Photo by John Angelillo/UPI | License Photo
June 19 (UPI) -- The Department of Justice has filed a civil forfeiture complaint to seize $225.3 million for victims involved in cryptocurrency scams.
The complaint, filed Wednesday, alleges that the cryptocurrency addresses that held over $225.3 million were part of a sophisticated blockchain-based money laundering network.
"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," said Matthew R. Galeotti, Head of the Justice Department's Criminal Division.
"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."
Last week, the DOJ found five men guilty who laundered over $36 million from victims. They operated out of Cambodia and face maximum penalties of between five and 20 years in prison.
Assistant Director of the FBI Criminal Division Jose A. Perez, said his agency will not allow the criminals targeting unsuspecting victims who believe they are making legitimate investments to keep these scams going.
"This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history, said Shawn Bradstreet, a special agent in that agency's San Francisco field office.
In this investigation, more than 400 suspected victims say they lost money after believing that they were making investments, officials said.
According to the FBI internet Crime Complaint Center's 2024 internet Crime Report, cryptocurrency investment fraud resulted in more than $5.8 billion lost in 2024. People over age 60 were impacted the most, losing an estimated $2.8 billion.
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