Key Insights:
- US Department of Justice freezes $580M in crypto linked to Chinese transnational scam networks.
- Scam Center Strike Force targets pig butchering fraud operations across Myanmar, Cambodia, and Laos.
- Federal agencies trace blockchain transfers to recover stolen funds and return assets to victims.
US authorities have seized or frozen more than $580 million in digital assets tied to global scam networks. The action targets funds linked to Chinese transnational criminal organizations. Officials said the operation focused on large investment and confidence scams.
The Department of Justice announced the enforcement action. The agency said it worked with federal partners to track and secure the crypto assets. The funds were identified during investigations into organized online fraud schemes.
Federal Crackdown Targets Global Crypto Scam Networks
The newly formed Scam Center Strike Force led the operation. The task force includes the Federal Bureau of Investigation and the Secret Service. Several U.S. Attorney’s Offices and federal units also supported the seizures.
Authorities said the networks ran cryptocurrency investment fraud, often called “pig butchering” scams. These schemes used social media and text messages to contact victims. Scammers built trust over time and then pushed victims to invest in real crypto assets. Later, victims were directed to fake trading platforms controlled by the fraud groups.
Attorney Pirro said, “In only three months, we have made progress, freezing, seizing, and forfeiting cryptocurrency worth more than $580 million.” She added, “Through the legal process, my Office will seek to forfeit these funds and return them to victims to the maximum extent possible.”
Scam Centers in Southeast Asia Under Investigation
However, prosecutors said many operations were based in Myanmar, Cambodia, and Laos. Fraud groups allegedly ran large scam compounds in these countries. Some reports state that workers inside these compounds were victims of human trafficking and forced labor.
The Strike Force is working to identify key leaders connected to Chinese organized crime. Authorities are also tracing digital wallets and blockchain transfers linked to the schemes. The goal is to recover funds and return money to victims through court-approved forfeiture.
The Justice Department said the seizure marks a major step in its ongoing effort against crypto-related fraud. Officials confirmed that investigations remain active, and more enforcement actions may follow.
The case forms part of a wider federal response to cross-border crypto scams targeting U.S. residents. Authorities continue to urge the public to verify investment platforms and report suspicious activity.
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Source: https://coincu.com/news/us-seize-580m-crypto-global-scam/
