-
U.S. authorities froze or seized over $580 million in crypto tied to scam networks.
-
The funds were linked to investment fraud and pig butchering schemes.
-
The crackdown involved DOJ, FBI, Secret Service, and IRS units.
-
Officials estimate broader scam losses near $10 billion annually.
Targeting Offshore Scam Compounds
The U.S. Attorney’s Office for the District of Columbia announced that its Scam Center Strike Force has frozen or seized more than $580 million in digital assets tied to Chinese transnational crime organizations.
The funds are linked to cryptocurrency investment fraud schemes often described as pig butchering scams. These operations typically build trust with victims via social media before directing them to fake investment platforms.
Authorities say many scam operations are based in Burma, Cambodia, and Laos, with workers sometimes held in trafficking compounds.
Growing Illicit Crypto Flows
Officials estimate that such fraud schemes cost Americans nearly $10 billion annually. A recent report by Chainalysis suggested Chinese-language laundering networks processed more than $16 billion in crypto last year.
The seized funds will go through forfeiture proceedings, with authorities seeking to return as much as possible to victims.
