DOJ Seizes $225 Million in Crypto Tied to Pig Butchering Scam
In a bold move to crack down on crypto-related fraud, the Department of Justice (DOJ) has filed a civil forfeiture complaint to seize approximately $225.3 million in cryptocurrency connected to pig butchering scams. This growing form of financial fraud blends romance scams and fake crypto investments, tricking victims into sending funds to scammers who then disappear. According to the DOJ, this operation affected over 400 victims. The focus keyword DOJ crypto seizure ties into a much larger effort by federal authorities to combat international money laundering schemes conducted via blockchain networks. The seized funds, held in Tether (USDT), represent one of the largest crypto-related recoveries to date.
How the DOJ Crypto Seizure Unfolded
The 75-page DOJ filing details how the FBI and U.S. Secret Service worked together to trace the fraudulent activity. Investigators linked seven groups of Tether tokens to an elaborate laundering network that distributed stolen assets through hundreds of wallets and transactions. Many victims had been lured into the scam through emotionally manipulative schemes—typically beginning with online conversations that slowly shifted toward investment “opportunities.” This form of scam, known as pig butchering, is increasingly common in Southeast Asia, where trafficked workers are coerced into scamming individuals worldwide. With support from Tether and the crypto exchange OKX, the DOJ identified suspicious activity in 2023 and initiated the process that led to this massive seizure.
High-Profile Victims and Massive Losses from Pig Butchering Scams
Among the named victims in the DOJ’s complaint is Shan Hanes, the former president of Heartland Tri-State Bank. Hanes was previously sentenced to 24 years in prison for embezzling tens of millions to funnel into one of these crypto scams. But the case doesn’t stop there—many everyday investors were also deceived, believing they were making legitimate investments in crypto. According to a 2024 FBI report, crypto investment scams caused approximately $5.8 billion in losses last year alone. What sets this DOJ crypto seizure apart is the scale and specificity of the assets recovered, which may offer hope for partial restitution for hundreds of victims caught in the scam’s web.
What Happens Next: DOJ’s Future Crypto Enforcement and Victim Restitution
The DOJ has stated that the recovered funds will be used to compensate verified victims of the pig butchering operation. However, any money not claimed could potentially be used to build a national cryptocurrency reserve, a controversial idea supported by the current administration. This case marks a growing trend of law enforcement proactively working with blockchain analytics, crypto platforms, and international agencies to intercept and dismantle crypto scams. For individuals, the case is a reminder to remain vigilant about unsolicited investment opportunities—especially those that begin through personal or romantic interactions online. As the DOJ crypto seizure continues to unfold, it signals a significant shift in how seriously financial crimes involving digital assets are being taken by regulators and prosecutors alike.
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