Scam Center Strike Force seizes $580 million in crypto in three months targeting Chinese networks

WASHINGTON — The U.S. Attorney’s Office for the District of Columbia announced Thursday that cryptocurrency freezes and seizures carried out by the Scam Center Strike Force have surpassed $580 million, intensifying efforts to dismantle Chinese transnational criminal organizations accused of orchestrating large-scale investment scams.

The milestone, disclosed by U.S. Attorney Jeanine Ferris Pirro alongside federal law enforcement partners, reflects what officials describe as a coordinated campaign against Southeast Asia-based fraud compounds that have siphoned billions from U.S. victims.

According to prosecutors, the Scam Center Strike Force has, in just three months since its creation in November, frozen, seized, and initiated forfeiture proceedings for more than $578 million in cryptocurrency allegedly tied to criminal networks operating in Burma, Cambodia, and Laos. Authorities say these groups use cryptocurrency investment fraud schemes and other confidence scams to target Americans via social media and text messaging platforms.

“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,” — Jeanine Ferris Pirro, U.S. Attorney, District of Columbia.

Scam Center Strike Force targets Southeast Asia fraud compounds

The Scam Center Strike Force was established to confront what officials describe as one of the fastest-growing forms of financial crime affecting Americans: cryptocurrency investment fraud, often referred to by investigators as “pig butchering.” In these schemes, fraudsters cultivate relationships with victims over weeks or months before persuading them to invest in what appear to be legitimate cryptocurrency platforms.

In reality, prosecutors say, victims are directed to fraudulent websites and applications controlled by criminal organizations. Once funds are transferred, they are rapidly moved through digital wallets and laundering channels to obscure their origin.

“These frozen and seized funds have been stolen by Chinese transnational criminal organizations (TCOs), which use cryptocurrency investment scams and a variety of confidence scams to steal the life savings of everyday Americans,” the U.S. Attorney’s Office said in its release.

The Scam Center Strike Force has focused on identifying key leaders and affiliates of these networks, including organized crime figures believed to be operating from scam compounds in Southeast Asia. Officials note that some workers inside these compounds are themselves victims of human trafficking, held under coercive conditions and forced to carry out online scams.

Interagency collaboration drives crypto seizures

The enforcement effort behind the Scam Center Strike Force spans multiple federal agencies. In addition to the U.S. Attorney’s Office for the District of Columbia, the initiative includes the Department of Justice’s Criminal Division—specifically the Computer Crimes & Intellectual Property Section (CCIPS), the Fraud Section, and the Money Laundering, Narcotics and Forfeiture Section.

The Federal Bureau of Investigation and the U.S. Secret Service are also central to the operation, along with field offices across Washington, San Francisco, Memphis, Honolulu, Phoenix, San Diego, New York City, and other locations.

Assistant U.S. Attorney Karen P. Seifert leads the Scam Center Strike Force for the Department of Justice. Cryptocurrency seizure efforts are overseen by Assistant U.S. Attorneys Rick Blaylock and John Borchert, working in coordination with CCIPS and investigative teams from the Secret Service’s Global Investigative Operations Center.

“Through the legal process, my Office will seek to forfeit these funds and return them to victims to the maximum extent possible,” — Jeanine Ferris Pirro, U.S. Attorney, District of Columbia.

Authorities emphasized that seizures are only one component of the Scam Center Strike Force strategy, which also includes criminal prosecutions and international coordination aimed at dismantling entire fraud networks.

Scam Center Strike Force and the scale of U.S. crypto fraud

Recent reporting cited by prosecutors estimates that cryptocurrency-related scam operations defraud Americans of nearly $10 billion annually. Officials say the Scam Center Strike Force is responding to a threat that has grown rapidly alongside the expansion of digital asset markets.

The schemes often begin with unsolicited contact through social media platforms or text messages to U.S.-based mobile phones. After establishing trust, scammers convince victims to invest in real cryptocurrency before redirecting them to fraudulent investment portals. The result is substantial financial loss, frequently involving life savings.

In some Southeast Asian countries where scam compounds operate, authorities note that scam-generated revenue is so significant it accounts for nearly half of national gross domestic product. This scale underscores why the Scam Center Strike Force has prioritized international cooperation and financial tracing tools to disrupt the flow of illicit digital assets.

Pirro signaled that asset recovery remains central to the mission. “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,” — Jeanine Ferris Pirro, U.S. Attorney, District of Columbia.

Officials urged victims of cryptocurrency investment fraud to report incidents to the FBI’s Internet Crime Complaint Center at ic3.gov. As the Scam Center Strike Force continues its operations, prosecutors say additional seizures and enforcement actions are expected.