DOJ seeks $26.4M in five crypto scam forfeiture cases

US prosecutors are trying to lock down another $26.4 million tied to crypto fraud, a reminder that tracing and freezing funds can happen well before investigators identify the people behind a scheme. For investors, the message is mixed: law enforcement is finding assets, but recovery for victims is still uncertain.

On July 21, the Justice Department filed five civil-forfeiture complaints linked to separate international fraud investigations. One case traced more than 270 suspected victim transactions tied to fake investment platforms. Another involved more than 200 romance-scam victims, with funds moved through hundreds of intermediary addresses to mix the money. DOJ said the laundering networks in all five cases were mostly based in Southeast Asia, with related IP addresses in China, Malaysia, and Cambodia.

The smallest case sought about $285,000 and involved a victim who had already lost money in an earlier fraud. Scammers then contacted that person again, falsely claiming they had recovered the stolen funds and asking for a fee.

DOJ said the five cases are part of more than $800 million recovered through its Scam Center Strike Force. A separate DOJ program page listed $832.8 million in restrained crypto as of June 18. Those figures use different dates and terms, and neither shows how much money victims will actually get back.