In a pivotal move showcasing a shift in law enforcement priority, the U.S. The Department of Justice (DOJ) has seized approximately $225 million in cryptocurrency linked to complex ‘pig butchering’ scams. The funds, primarily in USDT, were confiscated via a civil forfeiture action rather than criminal charges signaling the DOJ’s increased focus on recovering stolen assets for victims.
Phil Selden, former Acting U.S. Attorney for Maryland and now at Cole Schotz PC, described the seizure as a deliberate message: secure victim funds immediately even if arrests haven’t been made. He praised new DOJ Criminal Division head Matthew Galeotti, an experienced prosecutor from New York’s toughest organized crime unit, for prioritizing asset recovery to support affected individuals.
“There are victims right here in the U.S., and the Department emphasized that they didn’t want to delay action until an arrest was made they prioritized securing the cryptocurrency immediately.”
These scams, also known as “pig butchering,” typically involve scammers building fake online romantic relationships and convincing victims to invest in cryptocurrency then vanishing with the proceeds.
One high-profile victim: former Heartland Tri‑State Bank CEO Shan Hanes. His embezzlement of nearly $50 million, pushed into the scam, led to his bank’s collapse in Kansas in 2023.
Selden emphasized the wider implications of the case, stating that this is more than just a technology or finance issue it’s about families losing their life savings and small communities losing their local banks.
According to court filings and DOJ statements, the scam operation moved funds through an intricate web of over 200 crypto accounts primarily in USDT. Exchanges like OKX and Tether flagged these transactions during the 2023 investigation, enabling authorities to trace movements through dozens of intermediate wallets.
Although criminal charges including international extradition are expected, the DOJ’s swift seizure ensures victims have a path to reclaim at least part of their losses. Future steps could include luring suspects into U.S. jurisdictions for arrest, such as American territories like Guam.
Selden underscored the key message, stating that crypto-related crime is not some distant or abstract threat the Department of Justice wants the American public to know that it stands firmly in their defense.
Key insights from the DOJ’s $225M crypto seizure, highlighting its impact on victims, finance, and global enforcement:
| Insight | Details |
| Record Seizure | $225 million in criminal-linked crypto assets seized without arrests made yet. |
| Victim-Centric Approach | Shift under DOJ leadership to prioritize asset recovery over prosecution headlines. |
| Ripple Effects | The collapse of a local Kansas bank illustrates how crypto scams can undermine traditional finance. |
| Global Enforcement Strategy | DOJ may pursue extraditions, US-based lures, and inter-agency collaboration with exchanges like OKX. |
This landmark action serves as both a stark alert to crypto scam perpetrators and a reassurance to victims of federal resolve. With cross-border tactics and civil seizures now at the forefront, the DOJ is redefining how it protects ordinary Americans from fintech-enabled fraud.
