Crypto crime wave: U.S. seizes digital assets worth $225M in historic crackdown on global fraud networks
By ramontomeydw // 2025-06-22
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  • U.S. authorities confiscated $225 million in cryptocurrency tied to an international fraud network, the largest seizure in the U.S. Secret Service's 160-year history. The operation involved organized crime and human trafficking syndicates based in Southeast Asia.
  • Criminals posed as investors or romantic partners to lure victims into fake crypto platforms, then laundered funds using blockchain tricks (peel chains, chain hopping). Over 430 victims lost more than $3 billion across 263,000 transactions, including a Kansas bank CEO who embezzled $47 million.
  • These scams exploit digital tools, social media and unregulated exchanges to target victims worldwide. Authorities compared them to classic Ponzi schemes but noted their unprecedented speed and scale.
  • Beyond financial ruin, victims face emotional trauma and long-term hardship. The FBI estimates $5.8 billion in annual crypto fraud losses – likely underreported. Agencies used advanced blockchain analysis and partnerships (e.g., Tether) to freeze assets.
  • Interim U.S. Attorney Jeanine Pirro vowed to recover stolen funds but stressed the challenges of cross-border tracing. The case highlights the need for vigilance in the "Wild West" of crypto, urging victims to report scams via the FBI's Internet Crime Complaint Center.
In a landmark crackdown on digital-age financial crime, U.S. authorities have seized more than $225 million in cryptocurrency tied to a sprawling international fraud network that preyed on hundreds of victims through sophisticated investment scams. Interim U.S. Attorney for the District of Columbia Jeanine Pirro announced the unprecedented forfeiture on Wednesday, June 18. The seizure revealed a labyrinthine operation with ties to organized crime and human trafficking syndicates operating from scam compounds in Southeast Asia. The case was described as the largest cryptocurrency seizure in the 160-year history of the U.S. Secret Service. It exposes the dark underbelly of unregulated digital markets where criminals exploit trust, technology, and jurisdictional gaps to vanish with millions. The schemes, known as "pig butchering" scams, involve criminals posing as legitimate investors or romantic partners to lure victims into fake cryptocurrency platforms. Once funds are deposited, the money is laundered through complex blockchain maneuvers – peel chains, chain hopping and layers of intermediary accounts – to obscure its origins. Among the victims was a Kansas bank CEO who embezzled $47 million from his institution after falling for a fraudulent crypto pitch, only to lose it all. Another Texan lost $7 million before realizing the platform was a sham. In total, over 430 victims were identified – with losses exceeding $3 billion traced across 263,000 transactions.

From Bitcoin to bust: The Wild West of crypto fraud

Historical parallels to classic confidence games like Ponzi schemes are stark, but today's crimes unfold at unprecedented speed and scale. "This is about quick money. It's about old crimes being committed in new ways," said Pirro, who was a former Fox News host. (Related: Trump taps Fox News' Judge Jeanine Pirro as interim U.S. attorney for D.C.) The complaint underscores how digital tools enable criminals to operate across borders with near impunity, leveraging social media and unregulated exchanges to target victims globally. The Secret Service and the Federal Bureau of Investigation (FBI) employed advanced blockchain analysis to untangle the laundering network, collaborating with private sector partners like Tether to freeze assets. Authorities emphasized the human toll beyond financial ruin. "These scams prey on trust, often resulting in extreme financial hardship," said Secret Service Agent Shawn Bradstreet. FBI Agent Sanjay Virmani added that victims suffer "devastating and long-lasting consequences," including emotional trauma. The 2024 FBI Internet Crime Report estimates crypto fraud losses at $5.8 billion annually – a figure likely undercounted due to underreporting. The forfeiture marks a rare victory in a high-stakes cat-and-mouse game. Pirro vowed to "rip [stolen funds] from the hands of foreign criminals" and return them to victims, though challenges remain in tracing and repatriating assets across jurisdictions. For now, the case serves as a warning to both investors and regulators: The Wild West of cryptocurrency demands vigilance. "The hopeful investor now enters an international scale where there are no borders –and where crypto criminals avoid the rules," the U.S. attorney warned. Pirro's office urges potential victims to file reports via the FBI's Internet Crime Complaint Center. With crypto scams proliferating, the message is clear. Trust, but verify – or risk becoming the next statistic in the crime of the century. Visit BigGovernment.news for more similar stories. Watch Dr. Kirk Elliot explaining whether Americans should trust crypto or precious metals to protect their wealth. This video is from the Flyover Conservatives channel on Brighteon.com.

More related stories:

Crypto Nostradamus John Perez: Cryptocurrency scam is THE SCAM of the century. Coinbase data breach exposes high-value crypto holders to cyber criminals. Inside the desert scam factory: A young Syrian's harrowing tale. Sources include: ZeroHedge.com TheEpochTimes.com Justice.gov Brighteon.com
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