Federal authorities seized more than $225 million in cryptocurrency from scammers in what the Justice Department called the largest recovery ever linked to cryptocurrency confidence schemes.

The U.S. Attorney’s Office for the District of Columbia announced the seizure Wednesday, saying the FBI and Secret Service targeted a sophisticated money laundering network that defrauded more than 400 people worldwide.

Investigators used blockchain analysis to trace the funds, held in the stablecoin USDT, to cryptocurrency address 0xe280fB5d9A7F7208171C50368f02F127Ec34db59. The technology allowed authorities to follow digital transactions across numerous addresses designed to hide their origins.

$225M SEIZED FROM SCAMMERS BY THE US GOVERNMENT

Over $225M USDT has been recovered by the US Government from confidence scammers, in a case that included over 400 victims.

The funds have been moved by the US Government to this wallet: 0xe280fB5d9A7F7208171C50368f02F127Ec34db59 pic./0VAWfzhVJt

— Arkham (@arkham) June 20, 2025

The seized assets came from investment fraud schemes that promised high returns before stealing victims’ money, according to a complaint filed in U.S. District Court for the District of Columbia. The network executed hundreds of thousands of transactions affecting victims globally.

“These schemes harm American victims, costing them billions of dollars every year,” a Justice Department spokesperson said in a statement. Officials said they aim to disrupt such operations and potentially return funds to victims.

The seizure reflects increased government action against cryptocurrency crimes. Blockchain analytics firm Chainalysis reported a 38% increase in illicit cryptocurrency activity since 2019.

The operation involved cooperation with Tether, which issues USDT stablecoin. Unlike decentralized cryptocurrencies such as Bitcoin, USDT can be frozen or destroyed by its issuer when linked to illegal activities.

Authorities identified dozens of U.S. victims with losses totaling millions of dollars. The U.S. Attorney for the District of Columbia said the office was “taking a leading role in the fight against crypto-confidence scams” under Attorney General Bondi’s leadership.

The seized funds were moved to a government-controlled digital wallet. Chainalysis has previously helped recover approximately $12.6 billion in illicit cryptocurrency.

The record seizure serves as a warning to digital currency fraudsters as governments refine cryptocurrency regulation approaches. The use of blockchain analysis and collaboration with private companies like Tether may establish precedents for future enforcement actions.