DOJ seeks forfeiture of over $25 million in crypto tied to romance and investment scams

Scope of the forfeiture cases

According to the Justice Department’s filings, the five complaints cover several separate but related schemes in which victims were allegedly persuaded to send funds under false pretenses. Investigators said thousands of victims worldwide were misled into believing they were making legitimate digital asset investments, while the funds were instead funneled through laundering networks.

The largest of the cases seeks roughly $12.1 million in crypto. Prosecutors allege those funds were tied to romance scams that defrauded more than 200 victims. The complaint says the proceeds were routed through intermediary wallet addresses and mixed with money taken from other victims.

A second major case targets about $10.4 million. Investigators linked that amount to more than 270 suspected victim transactions. Three additional forfeiture actions involve smaller sums and center on fake investment account schemes, as well as a follow-on fraud in which victims were allegedly offered help recovering money that had already been stolen.

How the alleged schemes worked

The cases outlined by prosecutors point to a familiar fraud pattern in crypto-related scams. Victims were allegedly manipulated through social engineering and then directed toward fraudulent trading platforms or accounts presented as legitimate investment opportunities. In some cases, a supposed recovery service was later used as part of a second scam after the original theft.

Investigators said the movement of funds through multiple wallets was used to obscure the source and destination of the proceeds. The DOJ’s complaints describe the assets as part of broader money-laundering activity designed to conceal stolen funds after they were taken from victims.

Geographic links in the investigation

US authorities said the laundering networks were predominantly located in Southeast Asia. Investigators also identified related IP addresses in China, Malaysia, and Cambodia, according to the source report.

The filings do not represent criminal convictions, but rather civil forfeiture actions through which prosecutors seek control of assets they allege are connected to fraud. The claims now put the identified cryptocurrency at the center of court proceedings over whether it can be permanently seized.

Broader scam trend

The five cases underscore the scale that crypto-enabled romance and investment scams have reached, as described by investigators. Authorities say these operations combine personal manipulation, fake investment interfaces, and complex wallet transfers to make the schemes appear credible and to complicate efforts to trace the proceeds.

Taken together, the complaints present a picture of organized cross-border fraud infrastructure rather than isolated incidents. They also show how recovery scams can build on earlier losses, targeting people who have already been victimized once.