DOJ Seizes $225M in Crypto from Pig Butchering Scam, Signals Tougher Crypto Crime Crackdown

The U.S. Department of Justice has seized $225 million in cryptocurrency tied to pig butchering scams, marking a major move to recover stolen assets and protect American victims. Legal expert Phil Selden, a member at Cole Schotz PC and former acting U.S. Attorney for the District of Maryland, says the DOJ is sending a clear message: crypto crime has real-world consequences.

“This is a tone-setting case,” said Selden, emphasizing that the DOJ chose to act swiftly even before making arrests. The seizure highlights a shift under Matthew Galeotti, the new head of the DOJ’s criminal division, known for targeting organized crime. Galeotti is seen as a strategic and experienced prosecutor who understands how criminal networks exploit financial systems and impact everyday Americans.

A key example is Heartland Tri-State Bank, a small Kansas agricultural lender that collapsed in 2023. Its CEO, Shan Hanes, embezzled nearly $50 million and moved the funds to crypto wallets, allegedly under the influence of scammers. Hanes remains the largest victim in the DOJ's complaint.

“In rural areas, losing a bank can devastate a community,” Selden said, noting the critical role local banks play in supporting small businesses and farmers.

While no suspects have been publicly charged yet, Selden anticipates that indictments and possibly extraditions could follow. The DOJ may also lure suspects into U.S. jurisdictions like Guam, where arrests are more feasible.

Even without immediate prosecutions, the DOJ’s action reassures victims that crypto fraud is being taken seriously. “Crypto crime isn’t abstract—it’s hurting real people,” said Selden. “And the Justice Department wants Americans to know it has their backs.”

This case signals a new era of aggressive enforcement against crypto-enabled scams affecting U.S. citizens.