DOJ Seizes $225M In Crypto Linked To Pig Butchering Scams

HomeNews* U.S. Department of Justice (DOJ) moved to seize $225 million in cryptocurrency linked to pig butchering scams.

• The DOJ acted through a forfeiture motion without naming individuals tied to the theft.
• Legal experts say the seizure signals the DOJ’s urgency in protecting victims, even without making arrests first.
• The scams impacted everyday Americans and businesses, including the collapse of Kansas-based Heartland Tri-State Bank.
• Criminal charges and possible extraditions may follow, with the DOJ aiming to return seized assets to their rightful owners. The U.S. Department of Justice has initiated the seizure of $225 million in cryptocurrency connected to pig butchering scams. These scams involve criminals using fake online romances or business relationships to encourage victims to invest in fraudulent cryptocurrency schemes. The DOJ submitted a forfeiture motion for the assets in May, underlining that the funds in question were stolen from victims in the United States.

• Advertisement - Officials have not yet announced any arrests or accused individuals in the case. According to statements from legal expert Phil Selden, a Cole Schotz PC partner and former acting U.S. Attorney for Maryland, the DOJ moved quickly to secure the funds to prevent further loss to victims. Selden said this action shows law enforcement’s intent to act before any criminal charges or arrests.

“This is a tone-setting case. We have victims on American streets, and the Department made clear they didn’t want to wait for an arrest to actually ensure that the crypto was actually seized,” Selden explained. He noted that the DOJ’s approach under Matthew Galeotti, the new criminal division chief, is methodical and experienced in disrupting large criminal networks. Selden said Galeotti, recognized for taking on organized crime in New York, understands how criminal organizations move money and exploit weak regulations.

The impact of these scams has reached American communities. For instance, Heartland Tri-State Bank, an agricultural lender in Kansas, collapsed in 2023 after its CEO, Shan Hanes, lost nearly $50 million to pig butchering scammers. According to DOJ filings, Hanes became the largest victim when he transferred large bank funds to crypto wallets at the scammers’ direction. Selden pointed to the unique vulnerability of rural communities, saying, “If you don’t have a good bank, it’s hard to build or maintain a business.” For more details, see the Federal Reserve’s material loss review on the Heartland Tri-State Bank incident.

Looking ahead, Selden believes that criminal charges are likely, but cautioned that extraditing suspects located overseas may be slow and complex. The DOJ might also employ strategies to encourage suspects to enter American jurisdictions, such as U.S. territories like Guam, where arrests can take place more easily.

Even without public charges, the DOJ’s move delivers a message to affected communities. “Crypto crime isn’t abstract; it isn’t offshore,” Selden stressed. “It’s impacting real people, real communities, and the Department of Justice wants Americans to know it has their backs.”

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