The Department of Justice this week announced it has seized $225.3 million in funds linked to alleged cryptocurrency investment scams. The action marks the largest cryptocurrency seizure in Secret Service history, according to a statement.
In a crypto investment scam, scammers establish a relationship with victims to convince them to “invest” in crypto so they can steal their money. The DOJ complaint, filed in U.S. District Court for D.C., said the seized funds were part of a sophisticated blockchain-based money laundering network. More than 400 suspected victims are believed to have lost funds after being duped into believing that they were making legitimate crypto investments, according to a DOJ statement.
Cryptocurrency investment fraud caused more than $5.8 billion in reported losses in 2024 alone, according to the FBI Internet Crime Complaint Center. The American Bankers Association Foundation last year partnered with law enforcement agencies to produce a downloadable infographic to raise awareness of the scam among consumers. In addition, the Safe Bankers for Seniors program offers resources to educate the public about scams targeting older Americans, including crypto investment scams.
