{"id":314679,"date":"2023-04-03T21:28:52","date_gmt":"2023-04-03T20:28:52","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=314679"},"modified":"2023-04-04T00:45:39","modified_gmt":"2023-04-03T23:45:39","slug":"doj-seizes-112m-tied-to-cryptocurrency-schemes","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/doj-seizes-112m-tied-to-cryptocurrency-schemes\/","title":{"rendered":"DOJ seizes $112M tied to cryptocurrency schemes"},"content":{"rendered":"<p>The U.S. Department of Justice (DOJ) said in a <a href=\"https:\/\/www.justice.gov\/opa\/pr\/justice-department-seizes-over-112m-funds-linked-cryptocurrency-investment-schemes\">April 3<\/a> announcement that it has seized $112 million worth of digital assets tied to crypto investment scams.<\/p>\n<h2>DOJ seizes millions of dollars of crypto<\/h2>\n<p>Assistant Attorney General Kenneth A. Polite, Jr. said that authorities will return the seized funds to victims and will attempt to build public awareness, writing:<\/p>\n<blockquote><p>&#8220;These particularly vicious frauds \u2013 where scammers carefully cultivate relationships with their victims over time \u2013 have devastated families and cost individuals their life savings.&#8221;<\/p><\/blockquote>\n<p>In the relevant scams, perpetrators gradually earned the trust of their victims through social networks, dating websites, phone calls, text messages, and similar means of communication. Ultimately, the perpetrators convinced their targets to invest in fake cryptocurrency platforms before funneling the stolen funds to their own addresses.<\/p>\n<p>The DOJ said that this type of scam is called \u201cSha Zhu Pan,\u201d a Chinese phrase that means \u201cpig butchering.\u201d Most of the victims were between the ages of 30 and 49.<\/p>\n<p>The agency seized six crypto accounts across three states with authorization in the District of Arizona, the Central District of California, and the District of Idaho. The seized cryptocurrency accounts were allegedly used to launder funds from the above scams.<\/p>\n<h2>The DOJ's broader role in crypto crime<\/h2>\n<p>The DOJ noted that crypto fraud including pig butchering schemes increased 183% between 2021 and 2022, amounting to $2.57 billion of stolen funds. This accounted for most fraud reported to the FBI\u2019s online crime center, which amounted to $3.31 billion in total.<\/p>\n<p>The agency has also seized cryptocurrency on other occasions. In November 2022, it reported the seizure of 50,000 BTC <a href=\"https:\/\/cryptoslate.com\/silk-road-bitcoin-worth-3-36b-seized-by-doj-after-10-year-investigation\/\">tied to Silk Road<\/a>, then worth $1.05 billion. In February 2022, it seized 94,000 BTC tied to a <a href=\"https:\/\/cryptoslate.com\/us-department-of-justice-nabs-couple-for-allegedly-trying-to-launder-3-6-billion-worth-of-bitcoin\/\">Bitfinex theft<\/a>, then worth $3.6 billion. The FBI, an agency within the DOJ, seized $260,000 of assets <a href=\"https:\/\/cryptoslate.com\/fbi-seizes-260k-of-assets-including-eth-bored-ape-following-zachxbt-tip\/\">including NFTs<\/a> in February 2023.<\/p>\n<p>The DOJ has also taken direct action against certain cryptocurrency projects and related individuals. It has recently targeted <a href=\"https:\/\/cryptoslate.com\/doj-shuts-down-chipmixer-over-3b-of-cryptocurrency-money-laundering\/\">CoinMixer<\/a>, <a href=\"https:\/\/cryptoslate.com\/justice-department-investigating-collapse-of-do-kwons-terrausd-stablecoin-wsj\/\">Terra<\/a>, <a href=\"https:\/\/cryptoslate.com\/a-look-at-whats-going-on-with-bitzlato-and-its-impact\/\">Bitzlato<\/a>, and an <a href=\"https:\/\/cryptoslate.com\/onecoin-associate-irina-dilkinska-charged-following-us-extradition\/\">associate of the OneCoin scam<\/a> led by &#8220;crypto queen&#8221; Ruja Ignatova.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Department of Justice (DOJ) said in a April 3 announcement that it has seized $112 million worth of digital assets tied to crypto investment scams. DOJ seizes millions of dollars of crypto Assistant Attorney General Kenneth A. Polite, Jr. said that authorities will return the seized funds to victims and will attempt to [&hellip;]<\/p>\n","protected":false},"author":1403,"featured_media":288626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76799,77968],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DOJ seizes $112M tied to cryptocurrency schemes<\/title>\n<meta name=\"description\" content=\"The U.S. Department of Justice (DOJ) said in a March 3 announcement that it has seized $112 million worth of digital assets tied to crypto scams.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/doj-seizes-112m-tied-to-cryptocurrency-schemes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DOJ seizes $112M tied to cryptocurrency schemes\" \/>\n<meta property=\"og:description\" content=\"The U.S. Department of Justice (DOJ) said in a March 3 announcement that it has seized $112 million worth of digital assets tied to crypto scams.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/doj-seizes-112m-tied-to-cryptocurrency-schemes\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-03T20:28:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-03T23:45:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/bitconnect-doj.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mike Dalton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mike Dalton\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/doj-seizes-112m-tied-to-cryptocurrency-schemes\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/doj-seizes-112m-tied-to-cryptocurrency-schemes\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/#person\",\"name\":\"Mike Dalton\",\"url\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/mike-dalton\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/mike-dalton-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/mike-dalton-author-300x300.jpg\",\"caption\":\"Mike Dalton\"},\"jobTitle\":\"Former Journalist\",\"description\":\"Before transitioning to crypto writing in 2018, Mike studied library and information sciences. 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