US prosecutors seek forfeiture of $25M in crypto tied to international fraud
In brief
- US prosecutors filed civil forfeiture action targeting $25M+ in tokens tied to international fraud and money laundering
- Crypto scam victim losses reached $7.2B in 2025 alone, per DOJ figures
- DOJ Scam Center Strike Force focuses on Southeast Asian fraud operations and asset seizures
- Civil forfeiture suits target tokens as crime proceeds, not necessarily named defendants
Forfeiture action targets fraud proceeds
US prosecutors filed a civil forfeiture action targeting more than $25 million in tokens connected to international fraud and money laundering networks. The government sues the tokens themselves as proceeds of crime, not necessarily named defendants. No specific defendants, wallet addresses, or token types have been publicly disclosed in connection with the current action.
In civil forfeiture cases in the crypto context, the government files a complaint against the property itself, not necessarily a named person. The DOJ sues the tokens, arguing they represent proceeds of crime. This legal framework allows prosecutors to pursue digital assets even when individual perpetrators remain unidentified or beyond US jurisdiction.
Scale of crypto fraud losses
Victim losses from crypto scams reached more than $7.2 billion in 2025 alone, according to DOJ figures. The current action follows a landmark case from June 2025. The DOJ filed a civil forfeiture complaint involving more than $225 million in tokens tied to cryptocurrency investment fraud, described as the largest seizure of its kind ever executed by the US Secret Service.
Role of the Scam Center Strike Force
The Scam Center Strike Force, a DOJ-affiliated task force specifically focused on fraud operations running out of Southeast Asia, has been a consistent engine behind these seizures. Southeast Asian fraud operations, often described as pig butchering scams, have become the dominant source of large-scale crypto fraud losses globally.
These schemes typically involve prolonged relationship-building with victims online before steering them toward fake investment platforms, after which victims transfer real crypto to fictitious platforms. Blockchain analytics firms play a central role. Tools that map transaction histories can connect wallets to known fraud addresses, exchanges, or mixers. This capability underpins the government's ability to identify and trace stolen assets across the blockchain.
