U.S. Launches Scam Center Strike Force to Fight Crypto Fraud
The U.S. has created a new interagency Scam Center Strike Force. It targets Southeast Asian crypto-fraud networks that scam Americans. These groups cause billions in losses each year.
So far, authorities have seized $401.6 million in cryptocurrency. Operations are active in Burma, Bali, and Thailand. Agencies work together to disrupt scam infrastructure and protect victims.
Targeting Organized Crime in Southeast Asia
Chinese transnational criminal groups run advanced scams known as “pig butchering.” They trick victims into sending real crypto to fake investment platforms. Then, funds are quickly laundered through international wallets.
Many transactions pass through U.S.-based hosting providers before disappearing offshore. U.S. Attorney Jeanine Ferris Pirro called it “organized crime on a geopolitical scale.”
Ongoing Actions and Future Plans
- The Strike Force has confiscated $401.6 million and filed forfeiture actions for $80 million more linked to U.S. victims.
- The Treasury Department added scam-linked groups, including the Democratic Karen Benevolent Army, to its sanctions list.
- In Burma, the team seized scam websites and targeted satellite terminals used by fraud networks.
- In Bali, authorities prosecuted 38 suspects tied to Cambodia-based organizers.
- The FBI is working with Royal Thai Police to map criminal networks in Thailand.
The Strike Force aims to identify leaders of Chinese-linked scams and shut down U.S.-based infrastructures. This includes servers, internet accounts, and social media used to lure victims. Efforts also focus on cutting off financial channels and helping victims recover stolen funds.
Recent joint U.S.-U.K. sanctions targeted major Southeast Asian crime syndicates. These include the Huione Group and Cambodia’s Prince Group, both accused of laundering billions through crypto scams.
For more information, visit the Department of Justice announcement.
