U.S. prosecutors say they’ve frozen and seized more than $580 million in cryptocurrency in under three months — part of an aggressive new push to disrupt large-scale crypto fraud networks tied to transnational criminal groups.
What happened
- The seizures were carried out by the Scam Center Strike Force, a multi-agency initiative launched in late 2025 to target major crypto investment fraud and confidence scams linked to Chinese transnational criminal organizations operating across Southeast Asia.
- The U.S. Attorney’s Office for the District of Columbia called the operation “one of the most aggressive enforcement actions yet” against crypto-enabled fraud networks.
How the scams work
Prosecutors say the stolen funds came from U.S. victims in schemes often called “pig-butchering,” where scammers cultivate long-term trust with victims and then push them to fake crypto trading platforms or spoofed investment portals. Victims — sometimes lured via social media and messaging apps — are persuaded to transfer legitimate crypto assets that are quickly routed into wallets controlled by criminal networks.
Agencies involved and broader strategy
- The Strike Force combines prosecutors and investigators from the Department of Justice’s Criminal Division, the FBI, the U.S. Secret Service, and the IRS Criminal Investigation unit, among others.
- Officials emphasize that enforcement goes beyond wallet seizures. The Strike Force is also identifying organizers, infrastructure providers, and on-the-ground operators tied to scam compounds in Burma, Cambodia, and Laos.
- Jeanine Pirro, U.S. Attorney for the District of Columbia, said the rapid pace of seizures shows federal agencies are moving proactively to intercept illicit crypto flows before they can be laundered or dispersed. Returning recovered funds to victims “to the maximum extent possible” is a stated priority, though seized assets remain subject to forfeiture proceedings.
Scope of the problem and on-chain holdings
- U.S. authorities estimate crypto-related scams siphon nearly $10 billion a year from Americans.
- Arkham data indicate the U.S. government has accumulated a sizable on-chain crypto portfolio through enforcement actions, with Bitcoin reportedly making up over $21.5 billion of those holdings.
What this signals for crypto enforcement
The Strike Force’s early results suggest a shift from reactive policing toward sustained, centralized enforcement of crypto fraud — combining rapid on-chain intervention with traditional investigative work overseas to dismantle the networks behind large-scale scams.
Disclaimer
This report is informational and not investment advice. Trading or holding cryptocurrency carries significant risk; conduct your own research before making any decisions. © 2026 AMBCrypto
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