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The US Justice Department’s Scam Center Strike Force has restrained more than $1 billion in cryptocurrency linked to fraud, and prosecutors have charged six people over a Madagascar-based scheme that allegedly targeted about 800 Americans. US Attorney Jeanine Ferris Pirro said the task force will “follow the scammers to Africa, India, Europe” as networks move out of Southeast Asia.
The Justice Department’s Scam Center Strike Force has now restrained more than $1 billion in cryptocurrency connected to suspected fraud operations, reflecting the expanding scale of federal investigations into cross-border financial crime.
Established in November 2025, the initiative initially concentrated on criminal organizations operating scam compounds across Southeast Asia, particularly groups linked to Chinese organized crime.
However, investigators have increasingly identified suspected operations in other regions, prompting U.S. authorities to widen their enforcement efforts.
Addressing the latest developments, Pirro outlined the progress made against fraudulent operations originating from Southeast Asia.
“For the last year, the Strike Force has fought hard against the compounds in Southeast Asia facilitating these scammers, to the tune of $1 billion in cryptocurrency restrained,” — Jeanine Ferris Pirro, U.S. Attorney for the District of Columbia.
During its first three months, the task force reported more than $580 million in cryptocurrency freezes, seizures, and forfeitures.
Subsequent enforcement operations increased that figure substantially. In September, authorities targeted Xinbi Guarantee, a marketplace accused of providing services to fraudulent operators, bringing cumulative cryptocurrency restraints to approximately $938 million.
The latest milestone indicates that enforcement efforts have continued to expand beyond their initial geographical focus.
Authorities have also seized approximately 700 fraudulent cryptocurrency investment websites and Telegram channels allegedly supporting criminal activities.
The restrained assets remain subject to legal proceedings, with restrictions preventing their transfer or use while investigators pursue possible forfeiture and victim compensation.
Beyond asset recovery, the crackdown has involved private technology companies. Meta reportedly removed 17.3 million accounts associated with fraudulent activity, while OpenAI committed to cooperating with the strike force.
These developments highlight the growing role of technology companies in efforts to disrupt scam networks using digital platforms to recruit victims and facilitate financial fraud.
The Justice Department’s latest enforcement announcement included charges against six individuals accused of participating in a cryptocurrency investment scheme operating from Madagascar.
According to federal investigators, the alleged criminal organization had connections to Malaysia and China and established operations in Madagascar in early 2025.
The defendants allegedly used fabricated romantic relationships to persuade American victims to invest in fraudulent non-fungible token projects.
Participants reportedly impersonated women seeking relationships before directing their targets to cryptocurrency investment websites designed to appear legitimate.
Victims were then encouraged to connect their cryptocurrency wallets and deposit funds. Prosecutors allege that the operators subsequently withdrew the assets without the victims’ knowledge.
The Federal Bureau of Investigation identified approximately 74 cryptocurrency wallets associated with roughly 800 American victims.
Investigators also traced allegedly stolen funds to cryptocurrency accounts connected to individuals based in China.
Chui Kok Wa, identified by prosecutors as the suspected leader of the operation, faces a charge of conspiracy to commit wire fraud.
Investigators reportedly discovered employment contracts on Wa’s phones showing overnight work arrangements designed to coincide with business hours in the United States.
The contracts allegedly included financial incentives tied to amounts stolen from victims, suggesting a structured operation focused on maximizing fraudulent proceeds.
The case illustrates how scam networks can combine emotional manipulation with fraudulent cryptocurrency investment opportunities to obtain access to victims’ digital assets.
The charges remain allegations, and the defendants are presumed innocent unless proven guilty.
The expansion of suspected cryptocurrency fraud operations has prompted stronger cooperation between American authorities and international law enforcement agencies.
On September 3, the United States and Britain signed an agreement supporting parallel investigations and intelligence sharing against transnational criminal organizations.
The arrangement involves Britain’s National Crime Agency and Crown Prosecution Service, alongside American investigators pursuing financial fraud cases across multiple jurisdictions.
Pirro emphasized that the enforcement campaign would extend wherever criminal groups relocate their operations.
“My Strike Force will expand and grow, and follow the scammers to Africa, India, Europe, and wherever they try to plant their operations,” — Jeanine Ferris Pirro, U.S. Attorney for the District of Columbia.
The growing cooperation comes as scam networks reportedly relocate their activities in response to enforcement actions targeting traditional operating centers.
In a separate development, Zheng Zhao was extradited from the Netherlands and appeared before a California court on October 23.
That case concerns an alleged Cambodian cryptocurrency investment scheme involving 174 identified American victims.
The prosecution forms part of the Justice Department’s Cyber-Enabled Scam Initiative, which targets criminal organizations involved in online financial deception.
Authorities are increasingly relying on international agreements to pursue suspects, obtain financial evidence, and trace cryptocurrency transactions across jurisdictions.
However, differences in national legal systems and extradition procedures continue to complicate investigations involving multiple countries.
U.S. investigators have also intensified efforts to dismantle suspected fraud operations in Madagascar, where local authorities conducted raids supported by the FBI.
During an August operation, FBI personnel assisted Madagascar’s police in targeting 13 suspected scam compounds.
The enforcement action resulted in the seizure of more than 3,200 electronic devices, providing investigators with potential evidence concerning the activities of the alleged criminal organizations.
Nevertheless, American officials reported difficulties conducting interviews and completing their investigation after several suspects were repatriated to China before the process concluded.
Pirro subsequently requested the extradition of the six defendants charged in connection with the Madagascar operation.
The investigation also raised allegations of human trafficking and workplace abuse within the suspected compounds.
Federal authorities obtained a material witness warrant seeking testimony from 15 employees who allegedly accused Wa of trafficking and mistreating them.
The Justice Department reported that the individuals were believed to remain detained in Madagascar.
A material witness warrant allows authorities to secure testimony from individuals whose evidence may be important to criminal proceedings when their attendance cannot reasonably be guaranteed through ordinary legal procedures.
The broader investigation demonstrates that suspected scam networks may involve offenses extending beyond cryptocurrency theft, including money laundering and alleged human exploitation.
According to the Justice Department, the Scam Center Strike Force is intended to address cryptocurrency investment fraud, cyber-enabled financial crime, human trafficking, and related laundering operations.
With more than $1 billion in cryptocurrency restrained, hundreds of fraudulent websites seized, and international investigations continuing, American authorities are attempting to disrupt both the financial infrastructure and personnel supporting these operations.
However, the recovery of assets and successful prosecution of suspects will depend on the progress of individual cases and cooperation from foreign authorities.
As scam networks establish operations across additional jurisdictions, the latest enforcement actions underscore the challenges facing investigators attempting to trace stolen cryptocurrency, secure evidence, and return funds to affected victims.
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