MV Capital - U.S. Authorities Seek Forfeiture of $25 Million in Crypto from Romance and Investment Scams

Federal prosecutors have filed civil complaints targeting cryptocurrency linked to multiple international fraud operations that victimized people across the U.S. and Canada, adding to a major recovery effort by a dedicated task force

Multiple Investigations Target Fraud Networks

The U.S. Attorney’s Office for the District of Columbia filed five civil forfeiture complaints seeking more than $25 million in cryptocurrency. The assets stem from separate Secret Service investigations conducted through the Cyber Fraud Task Force.

Investigators traced funds through numerous wallet addresses connected to suspected scams. The operations primarily involved fake cryptocurrency investment platforms and romance schemes that tricked victims into transferring money.

One major case, prompted by alerts from Canadian authorities in late 2024, involved over 270 suspected victim transactions linked to fraudulent investment schemes. Prosecutors are seeking approximately $10.4 million in that matter.

Another significant complaint targets about $12.1 million connected to online romance scams affecting more than 200 victims. Scammers reportedly built trust with targets before directing them to phony investment opportunities.

Additional Cases and Recovery Scam

Three smaller complaints address further incidents reported by victims in the Washington area. One from March 2026 seeks roughly $2.4 million, while a May 2026 case involves about $1.23 million. The fifth complaint targets approximately $285,000 tied to a recovery scam, where fraudsters approached prior victims offering to retrieve lost funds for an additional fee.

In each instance, authorities identified laundering networks routing proceeds through overseas channels. IP addresses associated with the operations were mainly located in China, Malaysia, and Cambodia.

The cases add to more than $800 million that authorities say a dedicated federal scam task force has recovered.U.S. Attorney’s Office for the District of Columbia

Broader Enforcement Through Scam Center Strike Force

These actions form part of the Scam Center Strike Force, launched in November 2025 by U.S. Attorney Jeanine Ferris Pirro. The initiative focuses on disrupting cryptocurrency fraud networks, particularly those linked to transnational criminal organizations operating in Southeast Asia.

“This $25 million seizure is a direct result of the Scam Center Strike Force I launched in November 2025, and it demonstrates the power of aggressively targeting these international fraud networks,” Pirro stated. “Our investigators cut through complex laundering schemes, protected victims, and shut down criminal pipelines.”

The task force employs blockchain analytics and international cooperation to track and freeze illicit assets. Officials plan to pursue the forfeitures in court, with provisions to return recovered funds to eligible victims where possible.

Case Type	Approximate Amount Sought	Key Details
Investment Platforms	$10.4 million	Over 270 victim transactions
Romance Scams	$12.1 million	More than 200 victims
Other Investment/Recovery	$1.23M, $2.4M, $285K	Washington-area reports and fee scam

The latest forfeitures underscore ongoing challenges with “pig butchering” scams, where criminals use social engineering to lure victims into fraudulent crypto trading environments before moving funds through layered wallets.

Investigations continue, with authorities encouraging potential victims to come forward. The actions reflect intensified federal efforts to combat crypto-enabled financial crimes through tracing technology and cross-border collaboration.