The U.S. Department of Justice (DOJ) recently moved to seize $225 million in cryptocurrency linked to “pig butchering” scams, emphasizing that these funds were stolen from victims.
Phil Selden, former acting U.S. Attorney for the District of Maryland and current Cole Schotz PC member, described the case as “tone-setting.” He noted the DOJ’s decision to act before any arrests highlights the priority of protecting victims.
“We have victims on American streets, and the Department made clear they didn’t want to wait for an arrest to actually ensure that the crypto was seized,” Selden said.
The DOJ’s approach reflects the leadership of Matthew Galeotti, head of the criminal division, known for prosecuting major organized crime in New York. Galeotti understands how criminals move money, exploit regulatory gaps, and harm ordinary people.
Selden emphasized, “This isn’t just a tech or finance story. It’s about families losing their savings and small towns losing their banks.” A notable example is Heartland Tri-State Bank, a Kansas agricultural lender that collapsed in 2023 after its CEO, Shan Hanes, embezzled nearly $50 million and transferred it to crypto wallets under scammer direction. Hanes was also a victim in the DOJ’s complaint.
Selden added, “In rural areas like Kansas, where banks are scarce, losing a bank disrupts businesses and agricultural cycles.”
Looking ahead, Selden expects criminal charges but noted the DOJ prioritized seizing the crypto to safeguard victim assets. Extradition of suspects from abroad remains a complex, slow process dependent on international treaties. Alternatively, suspects might be drawn into U.S. jurisdictions like Guam for easier arrest.
Even without immediate arrests or trials, Selden said the case sends a clear message: “Crypto crime isn’t abstract or offshore. It affects real people and communities, and the Department of Justice wants Americans to know it has their backs.”