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US Federal authorities announced Thursday that more than $580 million in crypto tied to Chinese transnational criminal organizations has been seized or frozen as part of an aggressive crackdown on large-scale investment and confidence scams targeting Americans.
The action was carried out by the D.C. Scam Center Strike Force, a joint initiative involving the US Attorney’s Office for the District of Columbia, the Department of Justice’s (DOJ) Criminal Division, and the Federal Bureau of Investigation (FBI).
DOJ, FBI Dismantle Major Crypto Fraud Pipeline
According to a statement released by the DOJ, the digital assets were allegedly stolen by Chinese transnational criminal organizations that operate sophisticated crypto investment fraud schemes and other confidence scams designed to drain victims of their life savings.
Prosecutors said these criminal networks rely heavily on US-based internet services and social media platforms to identify and contact victims. Recent estimates suggest that the broader scam industry is siphoning nearly $10 billion each year from Americans.
US Attorney Jeanine Pirro said the strike force was formed in November specifically to coordinate efforts against these operations. In just three months, she said, authorities have made substantial progress.
“Freezing, seizing, and forfeiting cryptocurrency worth more than $578 million from these criminals” represents a major step forward, Pirro stated. She emphasized that the organizations behind the schemes are motivated solely by profit and are willing to exploit anyone.
“These criminals don’t care who you are, what you believe in, or what you ate for breakfast — all they want is to steal from good and honest Americans to line the pockets of Chinese organized crime,” she said.
Pirro added that recovering crypto is only one element of the broader strategy. Her office intends to pursue forfeiture proceedings through the courts in an effort to return as much of the recovered funds to victims as possible.
Addressing those who have been defrauded, she said authorities are committed to fighting to reclaim stolen savings from what she described as Chinese organized crime groups.
How Overseas Fraud Networks Trap American Victims
The strike force is focusing much of its attention on large scam compounds operating in Southeast Asia. Investigators say Chinese criminal networks run many of the most notorious facilities, often located in countries such as Burma, Cambodia and Laos.
Teams are working to identify and pursue senior figures within these organizations, including affiliates of Chinese organized crime groups believed to be directing operations from within those countries.
Many of the scams fall under the category of Cryptocurrency Investment Fraud, commonly referred to by fraudsters as “pig butchering.” The term reflects the method used: perpetrators spend weeks or months building relationships with victims — “fattening” them up — before persuading them to invest increasing sums of money.
Victims are typically encouraged to buy legitimate cryptocurrency through established platforms. Once trust is secured, they are directed to transfer their holdings into fraudulent investment websites or mobile applications controlled by the scammers.
Law enforcement officials say these schemes frequently begin with unsolicited messages on social media or text messages sent to US-based phone numbers.
After initiating contact, scammers cultivate personal relationships and present fabricated investment opportunities promising high returns. By the time victims realize the platforms are fake, their funds have already been moved beyond reach.
Featured image from OpenArt, chart from TradingView.com
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