We break down the details of a fraud scheme in which criminals stole a large sum in cryptocurrency.
The US Department of Justice has filed five civil forfeiture lawsuits to seize more than $25M in cryptocurrency linked to investigations of international fraud networks targeting US and Canadian residents.
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The funds were recovered as part of the Scam Center Strike Force, launched in November 2025. Since then, the program has returned more than $800M. The forfeiture complaints were filed in federal court on July 21, 2026.
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Details of the Five Cases: Romance Scams, Fake Investments, and Secondary Fraud
The investigations uncovered several money laundering networks and thousands of victims worldwide. Prosecutors said organizers misled victims into believing their crypto investments were legitimate. The largest case involves romance scams affecting more than 200 people. About $12.1M is being forfeited, with funds traced through hundreds of intermediary crypto wallets.
The second case involves fake investment platforms with more than 270 suspicious transactions. Forfeiture in that case totals roughly $10.4M.
Two other cases, filed in March and May 2026, involve victims in the US capital region and total about $1.2M and $2.4M respectively.
The fifth case involves secondary fraud: scammers promised to recover previously stolen funds from a victim, who then made a series of payments. About $285,000 is being forfeited in that case, with the investigation ongoing.
Read more: Crypto Scam Alert 2026 — 3 Projects Already Red-Flagged by Experts
Crime Geography: From Southeast Asia to North America
Investigators said the money launderers were primarily based in Southeast Asia, with IP addresses pointing to China, Malaysia, and Cambodia. That aligns with a global trend. Chainalysis data shows on-chain fraud-related flows continue to rise, with romance scams and fake investment platforms among the most common schemes.
Interpol’s First Light 2026 operation, conducted from January to April 2026, identified more than 142,000 victims, led to 5,811 arrests, and blocked 31,000 bank accounts. In that operation, Thai authorities uncovered a network that converted romance scam proceeds into crypto, with one suspect’s wallet processing more than $122.5M over 10 months.
Learn more: Top 5 Most Common Cryptocurrency Scams — How to Avoid Crypto Fraud in 2026
