U.S. federal authorities have established a new task force to disrupt Chinese cryptocurrency scam networks that defraud Americans of nearly $10 billion annually.
The Scam Center Strike Force team, supported by agents from the U.S. Attorney’s Office, the Department of Justice, the FBI, and the Secret Service, investigates and prosecutes criminal groups operating large-scale cryptocurrency investment scams (also known as pig butchering or romance baiting) and money laundering campaigns from criminal compounds across Southeast Asia.
The strike team focuses on tracing illicit funds, seizing scammers’ cryptocurrency, and coordinating with international partners to dismantle the infrastructure supporting their operations.
Chinese transnational criminal rings behind these scams use social media and text messages to gain victims’ trust before tricking them into transferring cryptocurrency into fraudulent investment platforms.
The scammers often work from compounds in Cambodia, Laos, and Burma, where workers are frequently victims of human trafficking, held against their will, and forced to target potential victims worldwide. In some countries where these compounds are based, scam-generated revenue often accounts for nearly half the nation’s gross domestic product (GDP), the Justice Department said.
“Scam centers are creating a generational wealth transfer from Main Street America into the pockets of Chinese organized crime,” U.S. Attorney Jeanine Ferris Pirro stated. “As the prosecuting office in the nation’s capital, my office has the authority to charge foreign defendants and seize foreign property.”
“In fiscal year 2025 alone, the U.S. Secret Service has responded to approximately 3,000 victims who contacted us regarding cryptocurrency investment schemes,” added Assistant Director Kyo Dolan of the United States Secret Service.
$401 million in cryptocurrency already seized
While the strike force has just been announced, it has already seized over $401 million in cryptocurrency and filed forfeiture proceedings for an additional $80 million in stolen funds. The strike force’s Burma team has also seized websites and is now seeking warrants to seize satellite terminals used for money laundering and other forms of fraud.
On Wednesday, the Treasury Department’s Office of Foreign Assets Control imposed sanctions on the armed group Democratic Karen Benevolent Army (DKBA) and four of its senior leaders for running cyber-scam operations in Burma that specifically target U.S. citizens.
It also sanctioned Thailand-based firms Trans Asia International Holding Group Thailand Company Limited and Troth Star Company Limited, as well as Thai national Chamu Sawang, all linked to Chinese criminal rings that finance the DKBA’s operations.
Under the sanctions, the assets of designated entities and individuals are now blocked, and U.S. individuals and organizations are barred from dealing with them, which may also expose them to potential sanctions.
Earlier this year, OFAC also sanctioned the Karen National Army (KNA) and twelve other companies based in Cambodia and Burma (and associated individuals) for their involvement in human trafficking and cyber scams.
In October, the U.S. Department of Justice seized $15 billion in bitcoin from the leader of Prince Group, a criminal organization that stole billions from Americans through cryptocurrency investment scams.
“A U.S. government estimate indicated that Americans lost at least $10 billion to Southeast Asia-based scam operations in 2024, a 66 percent increase over the prior year, with scams like those perpetrated by Prince Group TCO being particularly significant,” OFAC noted.
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