The United States Department of Justice (DOJ) announced the seizure of more than 225 million dollars in crypto linked to complex financial scams. This action represents a crucial step in the fight against a specific type of fraud called “pig butchering”, which aims to deceive investors with increasingly sophisticated schemes.
DOJ: record seizure against crypto scams in the USA
Last Wednesday, the DOJ filed a civil forfeiture complaint related to more than 225.3 million dollars in crypto, obtained through illicit money laundering activities. It is important to emphasize that in such cases, U.S. law focuses on the involved assets, namely the assets themselves, rather than the alleged culprits.
According to the authorities, this enormous figure comes from victims of an investment scam that involved over 400 people, each of whom suffered significant economic losses.
The testimony of Jeanine Pirro
Jeanine Pirro, acting federal prosecutor in the District of Columbia and well-known former Fox News host, has assured that the seized funds will be used to compensate the victims, helping to recover the savings fraudulently taken away.
Even without providing more details on the precise methods of the scheme, Pirro explained that the primary objective of the DOJ is to support those who have lost their savings, and that this action is part of a broader fight against crypto scams.
What is the “pig butchering” scam
The term “pig butchering” describes a scam in which the scammers progressively “fatten up” the victim, convincing them to make initially small investments, which then increase in amount over time, until the capital is completely eroded. This practice is particularly insidious because it relies on building false trust and an apparent initial success.
Tether has confirmed that it collaborated with the authorities during the investigation, officially linking this vast seizure to the “pig butchering” scheme.
The broader context of crypto frauds in 2024
A recent report from the FBI Internet Crime Complaint Center highlights how in 2024 crypto-related frauds caused losses amounting to over 5.8 billion dollars just in the USA. Considering other types of scams with digital assets, the total amounts to more than 9.3 billion dollars in damages.
Other initiatives to combat crypto scams in the United States
On the same day as the DOJ’s complaint, New York authorities seized $140,000 and froze another $300,000 linked to a fraudulent investment scheme promoted through fake ads on social media. The case identified over 300 victims, with total losses exceeding 1 million dollars.
The legislative and operational challenges
During a press conference, Pirro avoided commenting on whether the department intends to analyze Trump’s connections with the crypto sector, redirecting attention to fraud cases involving ordinary citizens.
It also highlighted the importance of the recent passage in the Senate of the GENIUS Act, a bill aimed at regulating stablecoin, which represent an increasingly significant component in the crypto ecosystem.
Impact and prospects against crypto scams
The record seizure of over 225 million dollars demonstrates the growing commitment of the US authorities in countering criminal phenomena that exploit the widespread adoption of crypto.
Not only does it represent a deterrent for fraudsters, but also a concrete hope of recovery for thousands of victims who risk seeing their savings wiped out.
Furthermore, legislative initiatives such as the GENIUS Act indicate a clear path towards a more robust regulatory framework and investor protection. However, the world of crypto remains complex, and the active involvement of institutions, digital asset issuers, and citizens will be crucial to ensure greater security and transparency.
