U.S. Nabs $580M+ in Crypto from Southeast Asian Scam Networks
U.S. Attorney Jeanine Ferris Pirro announced that federal authorities have frozen and seized more than $580 million in cryptocurrency tied to Southeast Asian scam networks, marking a major escalation in the government’s campaign against cross-border crypto fraud. The funds were restrained through the Justice Department’s Scam Center Strike Force, a task force formed in November 2025 to target cryptocurrency investment and confidence schemes linked to Chinese transnational criminal organizations. Officials said the groups use social media platforms and text messaging to target U.S. victims and siphon billions of dollars each year. Recent estimates place annual losses to Americans near $10 billion.
“In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $578 million from these criminals,” Pirro said in a statement. She said her office will seek forfeiture through the courts and aims to return funds to victims. Authorities are now tracing the crypto across exchanges and wallets to block cash-out points before the assets are further dispersed.
Inside the ‘Pig Butchering’ Operations
Authorities describe the schemes as “pig butchering” operations, in which fraudsters build relationships with victims before steering them into fraudulent crypto investments. Victims are persuaded to purchase legitimate digital assets and then transfer them to counterfeit trading platforms controlled by the scam networks. The operations often run out of secured compounds in parts of Southeast Asia, including Burma, Cambodia, and Laos. U.S. officials said some workers inside the compounds are trafficking victims who are forced to carry out scams under threat of violence. In certain areas, revenue generated from scam activity accounts for a large share of local economic output.
The Strike Force is focused on identifying senior figures within the criminal networks, including organizers and money launderers who move proceeds through blockchain transactions and shell accounts. Investigators are tracing funds across exchanges and wallets to disrupt cash-out points and freeze assets before they are dispersed.
Multi-Agency Task Force Targets Leadership and Infrastructure
The initiative brings together the U.S. Attorney’s Office for the District of Columbia and several Justice Department divisions, along with the Federal Bureau of Investigation, the U.S. Secret Service, and the Internal Revenue Service’s Criminal Investigation unit. U.S. Attorney’s Offices in Rhode Island and the Western District of Washington are also participating. The Justice Department said the Strike Force will continue targeting infrastructure, financial channels, and leadership structures tied to the fraud networks. The task force has established specialized tracing teams that monitor suspicious on-chain transactions in real time, leveraging blockchain analytics tools to identify fund flows and cooperating with global exchanges to freeze involved accounts. Authorities are also increasing surveillance on cash-out points and over-the-counter (OTC) brokers to disrupt money laundering channels.
Crypto Crime Hit $154 Billion in 2025
Data from Chainalysis shows illicit crypto addresses received at least $154 billion in 2025, a 162% year-over-year increase, with sanctioned entities driving much of the surge. Nation-states including Russia, Iran, and North Korea played an outsized role, leveraging blockchain infrastructure for sanctions evasion, money laundering, and large-scale thefts. Stablecoins accounted for 84% of illicit transaction volume, the report said. The report also highlights the expansion of Chinese money laundering networks offering “laundering-as-a-service” and other full-stack illicit infrastructure. Although illicit activity still represents less than 1% of total crypto volume, the scale and geopolitical dimension of the activity pose rising risks for regulators, law enforcement, and national security. These findings underscore the shift from individual scams to organized, state-backed threats requiring greater international coordination.