U.S. Attorney Jeanine Pirro announced that a federal task force targeting international crypto scams has frozen and seized more than $580 million in digital assets, marking a major milestone in the government’s crackdown on Southeast Asia–based fraud operations.
According to a recent statement from the United States Department of Justice, the funds were allegedly stolen by Chinese transnational criminal organizations that operate large-scale cryptocurrency investment and confidence schemes aimed at Americans.
Authorities say these criminal groups exploit U.S.-based social media platforms, messaging apps, and other online services to contact victims directly. Estimates suggest that Americans lose nearly $10 billion annually to these types of scams.
Pirro said the Scam Center Strike Force was launched in November to aggressively pursue such networks. In just a few months, investigators have managed to freeze, seize, or begin forfeiture proceedings for over half a billion dollars in cryptocurrency tied to the operations.
She emphasized that the criminal organizations are motivated purely by profit, targeting victims regardless of background or political affiliation. Pirro added that her office, along with federal and regional law enforcement partners, intends to use the legal forfeiture process to return as much of the recovered money as possible to those who were defrauded.
The Strike Force is focusing on dismantling some of the most entrenched scam hubs operating in parts of Southeast Asia. Officials say affiliates connected to Chinese organized crime groups are active in countries such as Burma, Cambodia, and Laos, where they coordinate online fraud schemes targeting U.S. residents.
One particularly notorious method, often referred to as “pig butchering,” involves gradually building a relationship with victims before convincing them to invest in fraudulent cryptocurrency platforms. Scammers typically create the illusion of profitable returns to encourage larger investments, only to ultimately divert the funds into accounts they control.
Federal officials also noted that many individuals working inside these scam compounds are themselves victims of human trafficking. Reports indicate that workers are often confined, abused, and forced to carry out fraudulent activities under armed supervision. In some countries where these operations are concentrated, the revenue generated by online scam networks represents a substantial share of the national economy.
The Scam Center Strike Force is a multi-agency initiative. It includes the U.S. Attorney’s Office for the District of Columbia and several divisions within the Justice Department’s Criminal Division, such as the Computer Crimes & Intellectual Property Section, the Fraud Section, and the Money Laundering and Asset Recovery Section.
The Federal Bureau of Investigation and the United States Secret Service are also key participants. Additional support comes from U.S. Attorney’s Offices in Rhode Island and the Western District of Washington, as well as the Internal Revenue Service’s Criminal Investigation division.
Prosecutors and specialized cryptocurrency seizure teams, along with Secret Service investigative units based in multiple field offices nationwide, are leading efforts to trace digital transactions, secure court orders, and prevent further movement of stolen funds.
Officials say the investigation remains ongoing, with the broader goal of dismantling the criminal networks behind the schemes and delivering financial relief to victims across the United States.
