The US Department of Justice (DOJ) has filed civil forfeiture complaints to seize more than $25 million in cryptocurrency across five separate investigations targeting international investment and romance scam networks. Out of the targeted assets, the single largest portion stands at $12.1 million linked to a romance scam scheme, where perpetrators lured over 200 victims into depositing funds into fraudulent crypto investment platforms.
The takedown of these fraudulent networks originated from intelligence shared by Canadian authorities in late 2024, after detecting patterns of suspicious cross-border financial activity. Building on these initial findings, US investigators traced over 270 victim transactions, ultimately prompting a $10.4 million forfeiture filing by the DOJ.
Fund tracing revealed that the core money laundering operations for all five cases were based in Southeast Asia. In-depth analysis of perpetrator IP addresses pointed to servers located across China, Malaysia, and Cambodia. If the court approves the forfeiture, eligible victims may have an opportunity to recover a portion of their funds once civil forfeiture proceedings conclude.
A Growing Record of Seizures
The $25 million seizure adds to the enforcement record of the Scam Center Strike Force. Since its establishment in November 2025 by Attorney General Jeanine Ferris Pirro, the specialized task force has pursued illicit digital assets, recovering over $800 million to date.
Civil forfeiture has become a cornerstone of the government’s efforts to sever criminal financial flows. By comparison, in March 2026, a Massachusetts court utilized the exact same mechanism to seize 327,829.72 USDT. That case also involved a romance scam syndicate, where victim funds were converted into the Tether stablecoin before being dispersed across numerous crypto wallets to evade tracing.
Asset forfeiture targets extend beyond fraud. In July 2025, the DOJ also filed for the forfeiture of approximately $2.3 million in Bitcoin, all connected to the Chaos ransomware group.
Cutting Off Cartel Lifelines
Beyond pursuing fraud syndicates in Asia, US authorities continue to clamp down on armed criminal organizations leveraging crypto. In March 2026, the US Department of the Treasury officially imposed economic sanctions on two major networks supporting Mexico’s Sinaloa Cartel.
The cartel was found to have utilized crypto channels to move proceeds from fentanyl trafficking across borders. In response, the Treasury Department targeted several Ethereum wallet addresses serving as bridges for cartel fund transfers, barring all financial interactions with the designated addresses.
This ongoing series of seizures underscores one key reality: digital footprints on the blockchain are never truly erased, and stolen funds are gradually finding their way back to their rightful owners. Reported via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
