The Justice Department announced on Wednesday the largest seizure of the US cryptocurrency linked to the so-called “pig slaughter” fraud that killed billions of casualties around the world.
Federal prosecutors have filed civil forfeiture measures covering more than $225 million in cryptocurrency, which stems from a vast web of fraudulent investment platforms. The victims were forced to believe they were investing in legitimate crypto ventures, but were often only scamned by criminal networks operating overseas.
“The seizure of a $225.3 million fund related to cryptocurrency investment fraud marks the largest cryptocurrency bout in the history of the US Secret Service.”
Authorities said the network is connected to at least 400 suspected victims worldwide, including dozens of US crypto frauds who were responsible for more than $5.8 billion in losses reported last year, according to FBI data.
The seized funds are now subject to forfeiture procedures aimed at ultimately returning the money to the victim.
The US Secret Service and the FBI used blockchain analysis and other tools to revert cryptocurrencies back to stolen assets. DOJ credited Tether, the world’s largest Stablecoin publisher, for helping with the operation.
The funds were linked to theft and laundry from victims of cryptocurrency investment fraud schemes, often known as romance-involved trust fraud, according to the complaints.
The network relied on hundreds of thousands of transactions to obscure the origins of funds, using sophisticated blockchain operations to hide the flow of stolen assets.
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