DOJ Warns Crypto Has Become the “Plumbing” of AI-Driven Fraud
The post DOJ Warns Crypto Has Become the “Plumbing” of AI-Driven Fraud appeared on BitcoinEthereumNews.com.
The US Department of Justice (DOJ) is signaling a major shift in its approach to crypto enforcement. Authorities frame digital assets not as standalone “crypto scams” but as a central tool in modern, industrial-scale fraud operations. Sponsored Sponsored DOJ Recasts Crypto as Fraud Infrastructure as AI Turns Scams into Industrial Operations In its 2025 Year in Review, the DOJ highlighted three high-profile cases that illustrate how crypto has become embedded in traditional crimes, citing: Medicare fraud Multi-million-dollar investment schemes, and Asset laundering. According to the DOJ, prosecutors charged 265 defendants in 2025 with an aggregate intended loss exceeding $16 billion. This is more than double the previous year. The Fraud Section operates through specialized units, including the Health Care Fraud Unit, which oversees seizures of crypto alongside cash, luxury vehicles, and other assets. Medicare Fraud: Elderly Targeted in $1 Billion Graft Fraud, Crypto Seized One of the most striking cases involved Tyler Kontos, Joel “Max” Kupetz, and Jorge Kinds, charged with a $1 billion amniotic wound allograft fraud. Sponsored Sponsored Tyler Kontos, 29, of Mesa, Arizona, Joel “Max” Kupetz, 36, of Scottsdale, Arizona, and Jorge Kinds, 49, of Phoenix, were charged with conspiracy to commit health care fraud, health care fraud, and conspiracy to defraud the U.S. in connection with a $1 billion wound scheme. — Navajo-Hopi Observer (@NHOnews) July 8, 2025 The scheme targeted elderly and terminally ill patients with medically unnecessary grafts, generating over $600 million in improper Medicare payments. Authorities later seized more than $7.2 million in assets, including crypto. Wolf Capital CEO Sentenced in $9.4 Million Crypto Investment Scam In another case, Travis Ford, former CEO of Wolf Capital, was sentenced to five years in prison for a $9.4 million crypto investment fraud promising 547% annual returns to roughly 2,800 investors. Sponsored Sponsored These cases illustrate…
Filed under: News - @ January 23, 2026 11:27 am