The U.S. Department of Justice filed a civil forfeiture action seeking to recover about $3.4 million in cryptocurrency. DOJ says the crypto is connected to an alleged online investment fraud involving multiple victims.

The U.S. Department of Justice, District of Massachusetts, announced it has filed a civil forfeiture action aimed at recovering approximately $3.4 million in cryptocurrency allegedly connected to online investment fraud. The government’s request seeks forfeiture of crypto assets it claims are traceable to the underlying scheme, which prosecutors say targeted multiple individuals. In the civil case, DOJ alleges that the fraud involved an investment-focused operation carried out through online channels and associated with the acquisition, movement, and use of cryptocurrency. By pursuing civil forfeiture, prosecutors seek to recover proceeds or assets believed to be derived from or used in wrongdoing, without requiring a criminal conviction in the forfeiture matter itself. DOJ’s filing describes an investigation into victims and the alleged financial activity tied to the scheme, including the role of crypto transfers in connection with the fraudulent conduct. The government’s theory is that the cryptocurrency in question is tied to the alleged investment fraud and therefore should be forfeited. If the court agrees with DOJ’s claims, the action could result in the assets being seized and handled according to forfeiture procedures. The filing reflects DOJ’s broader approach to disrupting investment fraud by targeting ill-gotten cryptocurrency proceeds.