Federal authorities have announced that the Scam Center Strike Force has frozen and seized over $580 million in cryptocurrency connected to fraud schemes operated by Chinese transnational criminal organizations. These actions are part of ongoing efforts to combat cryptocurrency-related scams targeting Americans, many of which originate from Southeast Asia.
The scams typically involve criminals using U.S. internet and social media platforms to contact victims and convince them to invest in what appear to be legitimate cryptocurrency opportunities. However, after gaining the victims' trust, scammers direct them to transfer funds into fraudulent investment websites and applications.
"In November, I announced the creation of our Scam Center Strike Force to lead the charge. In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $578 million from these criminals. These criminals don’t care who you are, what you believe in, or what you ate for breakfast—all they want is to steal from good and honest Americans to line the pockets of Chinese organized crime," said U.S. Attorney Jeanine Ferris Pirro. "My office and our law enforcement partners around the country are taking this threat head on. Seizures of cryptocurrency is one important part of the Scam Center Strike Force’s work. Through the legal process, my Office will seek to forfeit these funds and return them to victims to the maximum extent possible. To our American victims: we are here for you, we care for you, and we will continue fighting like hell to claw back your hard-earned savings from the hands of Chinese TCOs."
The Strike Force focuses on scam compounds located in Southeast Asia—particularly in Burma, Cambodia, and Laos—where leaders affiliated with Chinese organized crime operate schemes known as Cryptocurrency Investment Fraud (CIF) scams or "pig butchering." In these operations, scammers build relationships with their targets before convincing them to invest large sums in fake crypto investments.
Reports indicate that some scam compounds use trafficked laborers who are forced under threat or abuse to perpetrate these frauds against Americans. In certain countries where these compounds operate, revenue generated by scams reportedly constitutes a significant portion of national GDP.
The Scam Center Strike Force includes representatives from multiple agencies: the U.S. Attorney’s Office for the District of Columbia; DOJ’s Criminal Division (including Computer Crimes & Intellectual Property Section; Fraud Section; Money Laundering, Narcotics and Forfeiture Section); Federal Bureau of Investigation; U.S. Secret Service; Internal Revenue Service’s Criminal Investigation Unit; as well as offices in Rhode Island and Western Washington.
Leadership within the Department of Justice includes Assistant U.S. Attorney Karen P. Seifert overseeing the Strike Force initiative. The cryptocurrency seizure team is led by Assistant United States Attorneys Rick Blaylock and John Borchert alongside partners from CCIPS. Both FBI and Secret Service field offices across several major cities contribute resources toward identifying suspects and recovering stolen assets.
Americans who believe they have been defrauded through a cryptocurrency investment scheme are encouraged to report their case via the FBI Internet Crime Complaint Center at ic3.gov.
