TLDR

DOJ charged 265 defendants, recovering $16B in crypto fraud cases in 2025.
Crypto seized in Medicare fraud, investment schemes, and asset laundering.
DOJ treats crypto like cash, focusing on asset recovery over market speculation.
AI-driven crypto scams are on the rise, prompting regulatory action.

In its 2025 Year in Review, the US Department of Justice (DOJ) signaled a significant shift in its approach to cryptocurrency enforcement. The DOJ no longer views digital assets simply as tools for standalone scams. Instead, it now sees crypto as central infrastructure in large-scale fraud operations. This change in perspective underscores the role crypto plays in modern financial crimes, such as Medicare fraud, investment schemes, and asset laundering.

America First means zero tolerance for fraud! The Fraud Section’s 2025 Year in Review details aggressive actions @TheJusticeDept has taken against fraud at every level. https://t.co/N5S1r4VjoG

— Criminal Division (@DOJCrimDiv) January 22, 2026

The DOJ’s new focus highlights its intention to dismantle criminal networks using crypto and other illicit assets. The department’s efforts have resulted in major prosecutions, including the charging of 265 defendants with a combined intended loss exceeding $16 billion—an amount more than double the previous year.

Shift from Price Manipulation to Asset Recovery

Traditionally, crypto enforcement largely centered on price manipulation and retail market hype. However, the DOJ’s recent reports reflect a change in priorities. Enforcement now focuses on asset recovery and dismantling criminal infrastructure rather than speculation in the crypto market.

An example of this new strategy includes the seizure of over $7.2 million in digital assets tied to a $1 billion Medicare fraud scheme. The case involved targeting elderly patients with unnecessary medical treatments, ultimately costing the Medicare system over $600 million in improper payments. This case is indicative of a broader trend where crypto is increasingly treated like traditional forms of illicit value, such as cash, cars, or luxury goods, which have long been seized in fraud cases.

High-Profile Fraud Cases Involving Crypto

Several high-profile cases illustrate the DOJ’s new approach. One case involved the CEO of Wolf Capital, Travis Ford, who was sentenced to five years in prison for orchestrating a $9.4 million crypto investment scam. Ford promised investors unrealistically high returns, offering 547% annual profits to around 2,800 investors. This case is one of many that emphasizes how digital assets are now central to large-scale financial fraud operations.

These operations often rely on sophisticated strategies, including the use of AI and automated systems, to target and deceive victims. According to the DOJ, these scams are no longer isolated incidents but part of a broader criminal ecosystem, in which crypto acts as both a conduit for illegal funds and a tool for laundering money. This shift in enforcement priorities aligns with US policy aimed at curbing large-scale fraud in the digital asset space.

AI and Crypto: The New Frontier in Financial Crime

As AI technology advances, it has become a critical tool in the hands of fraudsters who exploit digital assets. AI-driven schemes, ranging from synthetic tokenized investments to frauds built around AI trading narratives, are expected to be a primary focus of future regulatory actions. The DOJ’s enforcement efforts are increasingly targeting these high-speed, automated fraud networks, which can scale quickly and reach a global audience.

In response to the growing sophistication of crypto scams, the bipartisan SAFE Crypto Act has been introduced to address the issue. The bill calls for the establishment of a federal task force to coordinate efforts to combat crypto scams, including AI-driven fraud. This initiative reflects the government’s growing concern about the rapid expansion of digital asset-based crime and its systemic impact on the financial system.

The post DOJ Shifts Crypto Enforcement Focus To Large-Scale Fraud Operations appeared first on CoinCentral.

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Filed under: News - @ January 23, 2026 1:29 pm