Washington’s newest crypto-fraud crackdown is starting to put real numbers on a shadowy ecosystem that has quietly drained innocent people’s savings for years. Federal prosecutors say the money trail is finally being cut off – and the amount seized is staggering.
DOJ Strike Force Says ‘Pig Butchering’ Networks Are Losing Access to Their Crypto War Chest
U.S. authorities have frozen or seized more than $580 million in cryptocurrency tied to Southeast Asia–based scam centers run by Chinese transnational criminal organizations, according to the U.S. Attorney’s Office for the District of Columbia.
The haul was credited to the Scam Center Strike Force, a recently launched effort aimed at dismantling “pig butchering” and related confidence scams that lure victims into bogus crypto investment platforms.
According to the DOJ’s statement, the playbook is familiar: scammers initiate contact through social media or text messages, build trust over time, and persuade targets to buy legitimate crypto, only to redirect funds into fake investment websites and apps controlled by criminals.
U.S. Attorney Jeanine Ferris Pirro said the strike force has moved quickly since its formation, describing the seizures as a key step in clawing back victims’ losses.
Said Pirro in the announcement:
In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $580 million.
The press release also tied the effort to a broader threat picture: recent reporting estimates this scam industry defrauds Americans of nearly $10 billion per year, with many cases believed to go unreported.
FAQ 🔎
- What did U.S. authorities say they seized or froze? The U.S. Attorney’s Office for D.C. said Scam Center Strike Force actions have topped $580 million in cryptocurrency freezes and seizures.
- What kinds of scams are linked to the funds? Prosecutors tied the crypto to “pig butchering” cryptocurrency investment fraud and other confidence scams run from Southeast Asian compounds.
- Where are the targeted networks said to operate? The DOJ said Chinese transnational criminal organizations run major scam compounds in Burma (Myanmar), Cambodia, and Laos.
- What can victims do if they believe they were targeted? The DOJ advised victims to file a report with the FBI’s Internet Crime Complaint Center at ic3.gov.
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