Major crackdown freezes over $300 million in cryptocurrency stolen from scams

Date:
Sun, 17 Aug 2025 13:03:00 +0000

Description:
The crypto industry is fighting back against scams, as it aims to prevent fraudsters from cashing out.

FULL STORY

The very nature of the blockchain often makes retrieving money stolen through scams almost impossible, however two separate announcements have recently confirmed more than $300 million of stolen crypto assets were frozen by law enforcement.

First, T3 FCU, an initiative built by crypto heavyweights TRON, Tether, and
TRM Labs, alongside Binance, which also helped freeze roughly $6 million
stolen through various pig butchering and romance scams, has claimed it successfully froze more than $250 million in illicit assets globally in its first year.

Freezing over $250 million in illicit assets in less than a year is a
powerful testament to whats possible when the industry comes together with a shared goal, said Paolo Ardoino, CEO of Tether.

Freezing and retrieving

This came alongside a separate announcement from Chainalysis, which said over the past six months it collaborated with agencies across North America on two initiatives: Project Atlas (led by the Ontario Provincial Police), and Operation Avalanche (led by the BC Securities Commission).

Cumulatively, these two operations uncovered more than $74 million in
combined losses and led to the freezing of tens of millions in illicit funds, bringing the total to more than $300 million.

Driven from Canada but truly global in scope, Project Atlas identified more than 2,000 crypto wallet addresses linked to fraud victims across 14
countries, including Canada, the US, Australia, Germany, and the UK, Chainalysis explained.

This global reach underscores both the borderless nature of cryptocurrency fraud and the international coordination required to combat it effectively.

Although neither report discusses it - it is perhaps worth mentioning that there is a big difference between assets being frozen and being seized, or retrieved. Freezing assets simply means that the scammers are prevented from moving or cashing out the funds, but it doesnt mean the victims got their
money back.

Actual recovery and restitution often require lengthy legal processes, proof
of ownership, and coordination across jurisdictions. Plenty of water under
the bridge before that happens.

Via BleepingComputer

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Link to news story: https://www.techradar.com/pro/security/major-crackdown-freezes-over-usd300-mil lion-in-cryptocurrency-stolen-from-scams

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