Federal authorities have announced that the Scam Center Strike Force has frozen and seized over $580 million in cryptocurrency from Chinese transnational criminal organizations. The announcement was made by U.S. Attorney Jeanine Ferris Pirro, who stated this marks a significant step in efforts to address Southeast Asian cryptocurrency-related fraud and scams.
The seized funds are linked to schemes run by Chinese criminal groups that use investment scams and other confidence tricks to steal from Americans. These groups reportedly exploit U.S. internet platforms and social media to target their victims, with recent estimates indicating Americans lose nearly $10 billion annually to such scams.
“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 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 task force targets scam compounds located mainly in Southeast Asia where fraudulent activities are coordinated by affiliates operating in countries such as Burma (Myanmar), Cambodia, and Laos. These operations often involve “pig butchering” schemes—so named because scammers gradually gain trust before defrauding their targets—which can involve workers who are themselves trafficked or held against their will.
In some Southeast Asian nations where these compounds operate, revenues generated through scamming represent a substantial portion of local economies.
The Scam Center Strike Force includes agencies such as the U.S. Attorney’s Office for the District of Columbia; DOJ’s Criminal Division—including sections focused on computer crimes and fraud—the Federal Bureau of Investigation (FBI), U.S. Secret Service, IRS Criminal Investigation Unit as well as regional offices in Rhode Island and Washington State.
Assistant U.S. Attorney Karen P. Seifert leads efforts for the Department of Justice while Assistant United States Attorneys Rick Blaylock and John Borchert manage cryptocurrency seizures alongside CCIPS partners.
For those affected by cryptocurrency investment fraud schemes, officials urge contacting the FBI Internet Crime Complaint Center at ic3.gov.