The U.S. Department of Justice announced that its newly formed DC Scam Center Strike Force has frozen, seized, or secured forfeiture orders for more than $580 million in crypto tied to transnational criminal organizations running large-scale investment fraud schemes targeting Americans.
According to federal prosecutors, the seizures were carried out during the Strike Force’s first three months of operations. The funds are linked to Chinese transnational criminal networks operating scam centers across Southeast Asia that allegedly orchestrated sophisticated online investment fraud campaigns.
Cryptocurrency investment scams have become one of the fastest-growing forms of fraud in the United States in recent years, defrauding victims of nearly $10 billion per year. The DOJ’s announcement signals a more aggressive posture aimed at tracking illicit crypto flows and holding overseas operators accountable.
Targeting Transnational “Pig Butchering” Networks
Authorities say the criminal groups used social engineering tactics to lure victims into fake cryptocurrency investment platforms. These schemes are often referred to as “pig butchering” scams. They typically involve weeks or months of grooming victims through social media and messaging apps to invest in real cryptocurrency, only to then trick their victims into transferring those funds into fake cryptocurrency investment websites and applications.
The DOJ stated that the seized cryptocurrency represents the proceeds of these fraudulent operations, which can amount to as much as half the Gross Domestic Product (GDP) of the countries these scammers operate out of. Investigators traced digital asset flows across blockchain networks and worked with exchanges and financial institutions to freeze assets before they could be moved or laundered further.
Multi-Agency Coordination for Crypto Enforcement
The DC Scam Center Strike Force was launched in 2025 by the U.S. Attorney’s Office for the District of Columbia to coordinate enforcement against large-scale international fraud networks. The initiative brings together federal prosecutors, the FBI, the U.S. Secret Service, and other agencies to investigate, disrupt, and prosecute criminal organizations using cryptocurrency to facilitate fraud.
A similar international cooperation between South Korean authorities and foreign exchanges led to a favorable resolution of a recent Bitcoin theft. The efforts restricted the hacker from selling the stolen assets, and they eventually returned 320.88 BTC to the authorities.
Beyond freezing funds, the Scam Center Strike Force is also targeting the infrastructure that enables the scams. This includes seizing fraudulent domains, disabling online platforms used to solicit victims, and pursuing sanctions or criminal charges against key operators. Federal officials emphasized that the Strike Force is focused not only on seizures but also on returning the recovered assets to victims through forfeiture proceedings and court-supervised processes.
While scammers have leveraged crypto’s global reach and speed to move funds quickly, authorities argue that blockchain transparency has also enabled investigators to track and freeze assets more effectively than in traditional financial crime cases. Officials said the Strike Force will continue to pursue additional seizures and prosecutions as investigations develop.
Temitope Olajide
The CoinRemark Team
