US Launches Special Task Force to Combat Chinese Cryptocurrency Fraudsters

Authorities in the United States have recently formed a specialized task force aimed at disrupting Chinese cryptocurrency scam networks that swindle Americans out of nearly $10 billion each year.

The Scam Center Strike Force, comprising agents from the U.S. Attorney’s Office, the Department of Justice, the FBI, and the Secret Service, is dedicated to investigating and prosecuting criminal organizations engaged in large-scale cryptocurrency investment scams, also known as pig butchering or romance baiting, and money laundering schemes from criminal compounds located across Southeast Asia.

One of the primary objectives of the strike team is to track illicit funds, confiscate scammers’ cryptocurrency assets, and collaborate with international partners to dismantle the infrastructure facilitating their illicit activities.

Criminal rings originating from China are behind these scams, employing social media and text messages to establish trust with victims before persuading them to transfer cryptocurrency into fraudulent investment platforms.

These scammers often operate from compounds in Cambodia, Laos, and Burma, where individuals are frequently subjected to human trafficking, held captive, and coerced into targeting potential victims worldwide. In certain countries hosting these compounds, revenue generated from scams can make up a significant portion of the nation’s gross domestic product (GDP), as per the Justice Department.

“Scam centers are facilitating a transfer of wealth from ordinary Americans to Chinese organized crime,” stated U.S. Attorney Jeanine Ferris Pirro. “As the prosecuting office in the nation’s capital, my office has the jurisdiction to prosecute foreign defendants and seize foreign assets.”

“In the fiscal year 2025 alone, the U.S. Secret Service has dealt with approximately 3,000 victims who reported cryptocurrency investment fraud,” added Assistant Director Kyo Dolan of the United States Secret Service.

$401 million in cryptocurrency already seized

Despite being newly established, the strike force has already confiscated over $401 million in cryptocurrency and initiated forfeiture proceedings for an additional $80 million in stolen funds. The team in Burma has also taken down websites and is currently seeking warrants to seize satellite terminals used in money laundering and other fraudulent activities.

Recently, the Treasury Department’s Office of Foreign Assets Control imposed sanctions on the Democratic Karen Benevolent Army (DKBA) and four of its senior leaders for running cyber scams in Burma targeting U.S. citizens.

Sanctions were also imposed on Thailand-based companies Trans Asia International Holding Group Thailand Company Limited and Troth Star Company Limited, along with Thai national Chamu Sawang, all linked to Chinese criminal groups financing the operations of the DKBA.

Under these sanctions, assets of the designated entities and individuals are frozen, and U.S. entities are prohibited from engaging in any transactions with them, potentially exposing them to further sanctions.

Earlier this year, OFAC sanctioned the Karen National Army (KNA) and twelve other companies based in Cambodia and Burma, along with associated individuals, for their involvement in human trafficking and cyber scams.

In an operation in October, the U.S. Department of Justice seized $15 billion in bitcoin from the leader of Prince Group, a criminal organization that defrauded billions from Americans through cryptocurrency investment scams.

“A U.S. government estimate revealed that Americans lost a minimum of $10 billion to scams originating in Southeast Asia in 2024, marking a 66 percent increase from the previous year, with groups like Prince Group TCO playing a significant role,” noted OFAC.