The U.S. Department of Justice (DOJ) has recently taken a bold step by moving to seize $225 million in cryptocurrency linked to notorious “pig butchering” scams, a decision underscoring the human cost of crypto fraud. The move comes without naming any suspects yet, but it’s a clear declaration of intent: the DOJ is prioritizing victim recovery over prolonged investigations.
An Unyielding Stance Against Crypto Scams
Phil Selden, a former acting U.S. Attorney and now a member at Cole Schotz PC, sees this case as a significant marker for the DOJ under the leadership of Matthew Galeotti. Known for dismantling New York’s organized crime, Galeotti’s approach isn’t merely technical or financial—it’s deeply human. “This isn’t just a tech story or a finance story,” Selden emphasizes. “It’s a story about families losing their savings, and small towns losing their banks.”
Heartland Tri-State Bank in Kansas serves as a stark example. This agricultural lender, a cornerstone of its community, collapsed in 2023 after its CEO, Shan Hanes, fell into the trap of pig butchering scammers, embezzling nearly $50 million. Hanes, ironically, stands as the largest victim in the DOJ’s complaint, a demonstration of how these scams can devastate even those who appear to benefit in the short term.
The Mechanics of Justice: Strategies and Challenges
The DOJ’s strategy seems clear: act swiftly to ensure victims’ funds are secured, even if it means delaying arrests. Selden suggests that while criminal charges are anticipated, the DOJ’s first priority was ensuring the seized crypto could find its way back to its rightful owners. “We have victims on American streets,” he notes, underscoring the immediacy with which the DOJ wants to operate. This approach echoes the Secret Service’s biggest-ever crypto seizure, where swift action was crucial in securing assets.
However, navigating the global nature of cryptocurrency crime presents its own set of hurdles. Extradition could be one route, albeit a complex one, relying on international cooperation through mutual legal assistance treaties. Alternatively, luring suspects into jurisdictions like Guam, where American legal processes are more straightforward, might offer a swifter path to justice. Yet, even without immediate arrests, Selden believes the DOJ is already sending a powerful message to victims: their losses haven’t gone unnoticed.
Ripple Effects on the Crypto Landscape
The implications of this case reverberate through the cryptocurrency market, raising essential questions about regulation and the responsibility of financial institutions in preventing such scams. There’s a growing realization that crypto crime isn’t just an offshore problem. It’s a domestic issue impacting real lives and communities across the nation. This is reminiscent of recent findings where crypto scam markets thrived despite cleanup attempts, highlighting the persistent challenges in combating fraud.
As the DOJ continues its investigations, the market watches closely. Could this be the dawn of more stringent regulations? Or will it spark innovation in security measures among crypto exchanges? The scenario remains fluid, leaving industry insiders and investors alike to ponder the future.
Looking Ahead: Justice and Accountability
While the road to justice may be long and intricate, the DOJ’s actions signify a commitment to holding bad actors accountable. As Selden aptly puts it, “Crypto crime isn’t abstract; it isn’t offshore. It’s impacting real people, real communities.”
The case, still unfolding, stands as a testament to the DOJ’s resolve. It’s a narrative of accountability and recovery, reminding us that behind every digital wallet is a human story—one that deserves to be heard and, ultimately, restored. As the DOJ’s efforts continue, the crypto world braces for what could be a transformative moment in its regulation and perception.
Source
This article is based on: DOJ’s $225M Seizure Puts Human Cost of Crypto Scams in Focus, Former Acting U.S. Attorney Says
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
