U.S. Department of Justice: Fraud Task Force Has Frozen and Seized $580 Million in Cryptocurrency Assets

GateUser-6433627c · 2026-02-27T14:49:31+00:00

The United States has established a "Fraud Center Strike Team" and has frozen over $580 million in cryptocurrency assets, mainly targeting transnational scam groups in Southeast Asia. Led by the Department of Justice, the team collaborates with multiple agencies to combat "pig-butchering" scams in Myanmar, Cambodia, and other regions, working to recover victims' losses. Although the seized amount is significant, it remains relatively small compared to the overall cryptocurrency scam landscape.

GateUser-6433627c

2026-02-27 14:49:31

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On February 27, the U.S. Department of Justice in Washington, D.C., announced that the “Special Task Force Against Fraud” established in November 2025 has taken action against Southeast Asian scam networks, freezing and seizing over $580 million in cryptocurrency assets. Led by the U.S. Department of Justice, the task force collaborates with the FBI, Secret Service, and Treasury Department to target transnational scam groups operating in Myanmar, Cambodia, Laos, and other regions involved in “pig-butchering” scams. Prosecutor Jeanine Pirro stated that the assets will be confiscated through legal procedures and, where possible, returned to victims.

The so-called “pig-butchering” scams typically involve social engineering to induce victims to purchase cryptocurrencies, then using fake investment platforms or apps to control and transfer the funds. Interpol has previously identified Southeast Asian scam hubs as a global threat. In September 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on 19 entities based in Myanmar and Cambodia. These scam activities caused over $10 billion in losses in 2024.

Blockchain analysis firm Cyvers CEO said that while the seizure of $580 million is “significant,” it still represents only the tip of the iceberg compared to the overall scale of global crypto scams. The company has identified approximately 27,000 active criminal groups involved in potential fraud risks amounting to about $27.5 billion. The U.S. also pointed out that some Southeast Asian scam networks are linked to Chinese organized crime, but industry analysts believe that these structures are increasingly decentralized and hybrid, characterized by multi-national cooperation and cross-border money laundering.

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