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DOJ moves to seize more than $25 million in crypto linked to international romance and investment frauds, targeting 670+ victim transactions across the US and
The U.S. Department of Justice has filed five civil forfeiture complaints to seize more than $25 million in cryptocurrency tied to cross‑border romance and investment scams that victimised hundreds in the United States and Canada【1】. The action underscores the growing reliance of fraud networks on crypto laundering and the DOJ’s expanding use of blockchain analytics.
| At a glance | |
|---|---|
| Forfeiture target | > $25 million |
| Largest single case | $12.1 million (romance scams) |
| Total victim transactions | > 670 |
| Primary laundering hubs | Southeast Asia (IP links to China, Malaysia, Cambodia) |
The five complaints, filed by the U.S. Attorney’s Office for the District of Columbia and the Secret Service’s Washington Field Office, each stem from separate investigations that uncovered layered wallet transfers designed to hide stolen funds【1】. The biggest complaint seeks $12.1 million linked to romance schemes that defrauded more than 200 victims, while another targets $10.4 million from over 270 suspected victim transactions【1】. Smaller cases involve $1.2 million, $2.4 million and roughly $285 000 tied to fake investment accounts and a fee‑based recovery scam【2】.
Scammers first built trust through romantic relationships or promises of high‑yield crypto investments, then directed victims to fabricated trading platforms. Funds were moved through multiple intermediary wallets and cross‑chain token swaps, often routed through networks based in Southeast Asia, to obscure the trail【1】. Blockchain analytics firms mapped these flows, enabling investigators to trace the assets back to the laundering pipelines【3】.
The forfeiture follows a broader DOJ crackdown that has recovered over $800 million since the Scam Center Strike Force was launched in November 2025【2】. Earlier actions include a June 2025 seizure of $225 million in tokens and a February 2026 confiscation of $61 million in USDT stablecoin linked to similar schemes【1】【3】. International cooperation, such as Interpol’s Operation First Light 2026, has amplified enforcement, resulting in thousands of arrests and the interception of hundreds of millions in illicit assets【1】.
The DOJ’s move highlights how crypto’s pseudonymous nature is being leveraged by sophisticated fraud networks, while also demonstrating that federal agencies are increasingly capable of tracing and seizing digital assets. The outcome of these forfeiture cases will shape both victim restitution and the broader regulatory approach to crypto‑enabled financial crime.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jul 22, 2026 · How we report
Crypto kiosks are ATM‑like machines that allow users to deposit cash and receive cryptocurrency, but scammers exploit them to move cash into untraceable digital assets, often leaving victims without the cash they deposited.
Police in Haverhill traced around $500,000 in losses to seven kiosks, and the FBI reported nearly $7 million in kiosk‑related fraud statewide for 2022.
U.S. prosecutors have filed five civil‑forfeiture complaints seeking about $26.4 million in cryptocurrency tied to international scams, aiming to freeze assets before suspect identification.
While four states have banned crypto kiosks and over 30 have imposed restrictions, Massachusetts currently has no specific laws regulating them, leaving the industry largely unregulated.
Law enforcement reports indicate that many large‑deposit victims are older adults, with an estimate that 80% of the biggest depositors at kiosks are scam victims, often over age 67.