US prosecutors are seeking to seize more than $25 million in cryptocurrency linked to international fraud and laundering networks, according to court documents. The funds are tied to romance and investment scams that bilked victims out of their savings, with the government filing a civil forfeiture action this week.
The forfeiture filing
The Department of Justice filed the forfeiture complaint in federal court, targeting cryptocurrency held in multiple wallets and accounts. Prosecutors allege the assets are proceeds of fraud and money laundering, part of a broader scheme that spanned several countries. The filing does not name specific exchanges but notes the crypto was moved through a series of transactions designed to obscure its origin.
Romance and investment scams
Romance scams typically involve fraudsters building fake relationships online before asking for money, often in cryptocurrency. Investment scams promise high returns but steal deposits. In this case, prosecutors say the two types overlapped: victims were lured into fake romantic connections, then pitched bogus investment opportunities. The $25 million figure represents only a portion of the alleged losses, according to the filing.
What happens to the seized crypto
If the court grants the forfeiture, the government will liquidate the cryptocurrency and use the proceeds to compensate victims or fund law enforcement programs. The process can take months, especially when assets are held across multiple jurisdictions. Prosecutors are also seeking forfeiture of any property traceable to the fraud, including real estate and luxury goods.
Next steps in court
A hearing is expected within 60 days, where claimants can challenge the seizure. No arrests have been announced, but the investigation remains active. The case highlights the growing use of cryptocurrency in cross-border fraud and the government's push to recover stolen funds.
