US moves to forfeit $25m in crypto from fraud schemes
U.S. prosecutors are seeking the forfeiture of $25 million in cryptocurrency tied to international scams, highlighting persistent vulnerabilities in digital asset cross-border flows.
The U.S. Attorney’s Office for the District of Columbia filed five civil forfeiture complaints on Tuesday targeting more than $25 million in cryptocurrency. The funds were recovered by Secret Service agents investigating international fraud networks that deceived thousands of victims in the U.S. and Canada into making fake crypto investments.
The complaints detail distinct fraudulent mechanisms. A probe originating from Canadian authorities in late 2024 traced over 270 victim transactions totaling roughly $10.4 million. A separate online romance scheme involved more than 200 victims and accounted for approximately $12.1 million. Three additional investigations, reported by victims in the National Capital Region between March and May 2026, targeted smaller pools of funds, including a $285,000 fee-based recovery fraud.
For market participants, the geographic footprint of the laundering operations underscores ongoing compliance challenges. Prosecutors noted that the launderers were predominantly located in Southeast Asia, utilizing IP addresses in China, Malaysia, and Cambodia. This routing points to the continued reliance on specific regional hubs to obscure illicit digital asset transfers, pressuring crypto exchanges and financial institutions to enhance cross-border transaction monitoring.
The seized assets represent a fraction of a broader enforcement effort. The complaints bring the total cryptocurrency recovered by the Scam Center Strike Force to over $800 million. U.S. Attorney Jeanine Ferris Pirro launched the initiative in November 2025.
For investors, the scale of the recovered funds illustrates the magnitude of capital still being siphoned from retail markets through deceptive investment platforms. As regulators step up their ability to trace and seize digital assets, the operational risk for platforms inadvertently processing these funds continues to rise.
