The recent establishment of a dedicated task force by U.S. federal authorities aims to combat the burgeoning issue of Chinese cryptocurrency scams, which are reportedly defrauding American citizens of nearly $10 billion annually.
The Scam Center Strike Force, backed by key agencies such as the U.S. Attorney’s Office, the Department of Justice, the FBI, and the Secret Service, is tasked with investigating and prosecuting organized criminal networks engaged in large-scale cryptocurrency investment scams—often referred to as “pig butchering” or “romance baiting”—as well as associated money laundering activities originating from Southeast Asia.
This specialized task force zeroes in on tracing illicit financial flows, confiscating fraudulently obtained cryptocurrency, and collaborating internationally to dismantle the operational framework supporting these schemes.
Transnational criminal organizations orchestrating these scams predominantly employ social media and text messaging to build trust with potential victims. Once the victims are engaged, they are coerced into transferring cryptocurrency to fraudulent investment platforms.
Many of these scams are facilitated from compounds located in Cambodia, Laos, and Burma, where workers are often victims of human trafficking. These individuals are held against their will and forced to perpetrate scams targeting a global audience. Alarmingly, in regions where these compounds operate, income generated from scams can constitute nearly half of the local gross domestic product (GDP), according to statements from the Justice Department.
“Scam centers are creating a generational wealth transfer from Main Street America into the pockets of Chinese organized crime,” stated U.S. Attorney Jeanine Ferris Pirro. “As the prosecuting office in the nation’s capital, my office possesses the authority to charge foreign defendants and seize foreign assets.”
Moreover, in the 2025 fiscal year alone, the U.S. Secret Service reported responding to approximately 3,000 inquiries from individuals concerning cryptocurrency investment schemes, according to Assistant Director Kyo Dolan of the United States Secret Service.
$401 Million in Cryptocurrency Already Seized
Although the task force has been newly formed, it has already made significant strides, seizing over $401 million in cryptocurrency and initiating forfeiture action on an additional $80 million in stolen assets. The strike force’s operations in Burma have further resulted in the confiscation of websites, with ongoing efforts to secure warrants for the seizure of satellite terminals used for money laundering and various fraudulent activities.
On a related note, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) recently imposed sanctions on the Democratic Karen Benevolent Army (DKBA) and four of its senior leaders for their role in cyber scamming operations targeting U.S. citizens from Burma. Additional sanctions were levied against Thailand-based firms, including Trans Asia International Holding Group Thailand Company Limited and Troth Star Company Limited, as well as Thai national Chamu Sawang, all of whom are linked to the financial activities of Chinese organized crime.
The sanctions block the assets of these designated entities and individuals while prohibiting U.S. individuals and organizations from conducting transactions with them, thereby mitigating the risk of being complicit in these acts.
Earlier this year, OFAC also sanctioned the Karen National Army (KNA) and twelve firms from Cambodia and Burma, along with associated individuals, in recognition of their involvement in human trafficking and cyber fraud.
In a significant operation last October, the U.S. Department of Justice successfully seized $15 billion in bitcoin linked to Prince Group, a criminal organization responsible for large-scale thefts from American investors under the guise of cryptocurrency opportunities.
According to government estimates, American losses attributed to Southeast Asia-based scams reached an alarming $10 billion in 2024—a staggering 66% increase compared to the previous year. This surge highlights the substantial impact of scams orchestrated by entities such as Prince Group TCO, underscoring the urgent need for continued vigilance and intervention in the cryptocurrency landscape.