U.S. Seeks Forfeiture of $25 Million in Crypto Tied to Romance, Investment Scams

Federal prosecutors filed five civil forfeiture complaints seeking more than $25 million in cryptocurrency that investigators say originated from international romance and investment scams targeting victims in the U.S. and Canada.

The complaints, filed in U.S. District Court for the District of Columbia, stem from separate Secret Service investigations into cryptocurrency-based fraud schemes. Civil forfeiture proceedings allow the government to seek control of assets tied to alleged criminal activity through a case against the property itself, a legal process that is separate from criminal charges against any individual.

How Investigators Traced The Funds

Agents traced funds through hundreds of wallet addresses and froze cryptocurrency linked to more than 270 suspected investment scam transactions and more than 200 romance scam victims, according to the U.S. Attorney’s Office. 

Several victims identified in the investigations are located in the Washington, D.C. area. Investigators used blockchain analysis techniques to follow funds moved by scammers across multiple wallets.

Breakdown Of The Five Cases

The two largest complaints involve the bulk of the money sought. One case seeks approximately $12.1 million tied to online romance schemes, in which scammers built relationships with victims before directing them to move funds into cryptocurrency. A second case seeks about $10.4 million linked to fraudulent investment platforms that presented victims with fake trading dashboards or account balances.

Three smaller complaints seek roughly $1.23 million, $2.39 million, and $285,000, respectively, according to the filings. Together, the five cases total more than $25 million in cryptocurrency the government is seeking to forfeit.

Scam Tactics Described In The Filings

The filings describe specific tactics used in some of the schemes. In one case, scammers cut off contact with a victim after that person attempted to withdraw funds from what appeared to be a legitimate crypto investment account. In another, fraudsters contacted someone who had already lost money to a scam and offered, for a fee, to help recover the funds, a tactic known as a recovery scam that specifically targets people who have previously been defrauded.

The filings describe recovery scams as relying on victim lists that may circulate among scam networks after an initial fraud has taken place. Victims targeted this way can lose money twice: once to the original scheme, and again to a follow-up scammer posing as someone able to recover the lost funds.

Part Of A Broader Federal Task Force Effort

The cases fall under the Scam Center Strike Force, a task force that launched in November 2025 to target organized crypto scam operations, including so-called pig-butchering schemes often run from overseas scam compounds. The U.S. Attorney’s Office said the task force has recovered more than $800 million since it began operating.

The five new complaints have not yet resulted in any court ruling on forfeiture. Under civil forfeiture procedure, affected parties may contest the government’s claim to the funds before a judge decides whether the assets should be permanently forfeited.

The recovered totals reported by the task force reflect funds that have been seized or frozen through legal process, not necessarily funds that have already been returned to victims. Distribution of forfeited assets back to victims typically follows a separate legal process that can take place well after a forfeiture judgment is entered. The $800 million figure describes assets brought under government control rather than compensation already delivered.