Crypto Scam Crackdown: DOJ Seizes $225M in Largest-Ever Pig Butchering Sting
The US Department of Justice (DOJ) has made its biggest crypto-related seizure to date, taking control of $225 million in digital currency linked to a large-scale scam operation known as "pig butchering."
Announced Wednesday, the DOJ said the money came from hundreds of victims tricked into believing they were investing in real cryptocurrency projects.
In reality, they were part of a complex fraud run by criminal networks, some operating out of the Philippines.
"This seizure... marks the largest cryptocurrency seizure in US Secret Service history," said Shawn Bradstreet of the Secret Service's San Francisco Field Office, CNBC reported.
The DOJ explained that scammers often spend weeks or months building fake relationships with victims online before convincing them to invest large sums.
These scams are often called "pig butchering" because victims are "fattened up" with fake gains before being drained of funds.
Today, Matthew R. Galeotti of @DOJCrimDiv announced a civil forfeiture complaint to seize $225.3M in cryptocurrency tied to investment fraud & money laundering. The funds were traced through a sophisticated blockchain network used to scam 400+ suspected victims. pic.twitter.com/pBEN8Mjrfd — Criminal Division (@DOJCrimDiv) June 18, 2025 Bank CEO Jailed After Falling for $47M Crypto Scam
More than 430 victims have been identified so far. One of them was Shan Hanes, a Kansas bank CEO who stole $47 million from his own bank to invest in a scam. He was sentenced to 24 years in prison in 2024.
His lawyer later said Hanes "was the pig that was butchered," showing how these schemes can even fool experienced professionals.
According to FortuneCrypto , the stolen crypto was held in Tether (USDT) and laundered through the exchange OKX. The DOJ traced the money using blockchain tools.
The complaint also mentioned "scam compounds" in the Philippines—places where workers are forced to scam people online, often under terrible conditions.
The DOJ praised Tether for helping freeze the funds. The money will now go through a legal process called civil forfeiture, which may help return it to victims.
"These schemes harm American victims, costing them billions of dollars every year," said DOJ criminal division chief Matthew Galeotti.
Crypto scams are growing fast. According to FBI data, Americans lost $9.3 billion to online scams in 2024, a 66% jump from the previous year. Many of these involved fake investment offers or sextortion tactics.
Originally published on vcpost.com
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