U.S. Department of Justice Seizes 8.2 Million in Cryptocurrency

Executive Summary

​In February 2025, The U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) seized over $8.2 million in cryptocurrency linked to “romance baiting” scams. These scams can result in significant financial losses for individuals and tarnish trust in online dating apps. Law enforcement agencies such as the FBI are investigated and seized illicit funds, using blockchain tracing tools to follow stolen assets across platforms. Individuals can mitigate the risk by verifying identities of people they meet online and avoiding sending money to unfamiliar sources. Online dating platforms and cryptocurrency exchanges should enhance security measures and implement identity verification. Governments must work together internationally to track down and apprehend cybercriminals involved in these scams.

Background

​Romance scams, also known as “pig butchering” or “romance baiting,” are a cybercrime in which criminals create fake online identities to build emotional relationships with victims and manipulate them into sending money under false pretenses [1]. These actors often operate from regions like Southeast Asia, including countries such as China, Vietnam, Cambodia, and Thailand, where organized criminal groups exploit individuals The modus operandi typically includes initiating contact through social media or dating apps. They establish trust over time, and fabricate emergencies or investment opportunities to solicit funds.

A joint effort by the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI)I ended with the seizure of 3.2 million dollars worth of the cryptocurrency USDT (Tether) [4]. The DOJ employed dual legal strategies, wire fraud and money laundering statutes to seize the funds. aiming to maximize restitution for both known and unidentified victims. Tether Limited, the issuer of the USDT cryptocurrency involved, played a crucial role by freezing the stolen fund. Tether Limited burned the original tokens, and reissued them to law enforcement-controlled wallets. The operation underscores the effectiveness of public-private partnerships. The sophisticated tracing tools used to combat cryptocurrency fraud played a large role in the success of the operation. It also highlights the global nature and connections to human trafficking operations in Southeast Asia. The threat group behind the particular ‘romance baiting’ operation is believed to be tied to human trafficking syndicates in Cambodia and Myanmar.

Impact

The scams are harmful because it results in significant financial losses for victims such as older individuals who may be more trusting. The emotional toll on victims is severe; Embarrassment or shame may contribute to underreporting. This can also undermine trust in online platforms, especially dating apps and investment sites. The global nature of these scams makes them difficult to trace and apprehend perpetrators [3]. The widespread impact of these scams highlights the need for better prevention strategies, stronger law enforcement, and greater awareness to protect individuals from becoming victims.

Mitigation

An effective mitigation against romance baiting scams is enhanced transaction monitoring and blockchain analytics. This approach involves using artificial intelligence and forensic tools. The AI tools detect suspicious patterns in cryptocurrency transactions. Fraudulent activities are flagged before significant financial losses occur. Romance baiting scams can be properly identified and prevented by leveraging advanced transaction monitoring and blockchain analytics.

Relevance

These scams involve fraudsters establishing fake romantic relationships to deceive individuals into investing substantial sums in fraudulent schemes. The relevance of addressing this issue is underscored by the substantial financial losses reported. Mitigating the risks associated with romance scams is crucial and involves proactive measures such as educating individuals to recognize warning signs [2]. A significant benefit of performing these mitigation measures is the reduction in victimization rates, leading to safer online environments.

References

[1] Constantinescu, V. (2025, April 1). US Department of Justice Seized Over $8 Million in Crypto from Romance Scam. Bitdefender. https://www.bitdefender.com/en-us/blog/hotforsecurity/us-department-of-justice-seized-over-8-million-in-crypto-from-romance-scam?utm

[2] Fletcher, E. (2023, February 9). Romance scammers’ favorite lies exposed. Federal Trade Commission. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/02/romance-scammers-favorite-lies-exposed?utm

[3] Francis, C. (2025, April 1). Building in Philippines hides dark secret ripping off Aussies. News.com. https://www.news.com.au/finance/building-in-philippines-hides-dark-secret-ripping-off-aussies/news-story/52e3f4eb23ac933a5116fc2aec5c0b69?utm

[4] Paganini, P. (2025, March 29). FBI And DOJ Seize $8.2 Million In Romance Baiting Crypto Fraud Scheme. Security affairs. https://securityaffairs.com/175990/cyber-crime/fbi-and-doj-seize-8-2-million-in-romance-baiting-crypto-fraud-scheme.html?utm