U.S. authorities have reported that the Scam Center Strike Force has frozen and seized more than $580 million in cryptocurrency linked to Chinese transnational criminal organizations. The announcement was made by U.S. Attorney Jeanine Ferris Pirro, who said this is a significant step in efforts to combat Southeast Asian cryptocurrency-related fraud and scams.
The funds were taken from groups accused of using cryptocurrency investment scams and other confidence schemes to steal money from Americans. According to recent reports, these types of scams are estimated to cost Americans nearly $10 billion each year.
“In November, I announced the creation of our Scam Center Strike Force to lead the charge. In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $578 million from these criminals. 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,” said U.S. Attorney Pirro. “My office and our law enforcement partners around the country are taking this threat head on. Seizures of cryptocurrency is one important part of the Scam Center Strike Force’s work. Through the legal process, my Office will seek to forfeit these funds and return them to victims to the maximum extent possible. To our American victims: we are here for you, we care for you, and we will continue fighting like hell to claw back your hard-earned savings from the hands of Chinese TCOs.”
The strike force is focused on targeting scam compounds in Southeast Asia operated by Chinese criminal organizations. These groups reportedly use “pig butchering” scams—so named because fraudsters attempt to gain their victims’ trust before defrauding them—to trick individuals into investing real money into fake cryptocurrency platforms.
Many workers inside these scam operations are believed to be victims themselves, trafficked and forced into labor under abusive conditions while being instructed to target people in the United States through social media or text messages.
In some Southeast Asian countries where these compounds operate, revenue generated by such scams makes up a large share of their national economies.
The Scam Center Strike Force brings together multiple agencies including the U.S. Attorney’s Office for the District of Columbia; Department of Justice Criminal Division sections; Federal Bureau of Investigation; U.S. Secret Service; Internal Revenue Service’s Criminal Investigation Unit; as well as offices in Rhode Island and Washington state.
Assistant U.S. Attorney Karen P. Seifert leads the effort for the Department of Justice with Assistant United States Attorneys Rick Blaylock and John Borchert heading up cryptocurrency seizures alongside partners from DOJ’s Computer Crimes & Intellectual Property Section (CCIPS). The U.S. Secret Service handles related cases through its Global Investigative Operation Center and various field offices across major cities such as San Francisco, San Diego, Memphis, Washington D.C., Nashville and Seattle.
The FBI’s Cyber Enabled Fraud and Money Laundering Unit also participates with involvement from several field offices nationwide.
Victims who believe they have lost money due to a cryptocurrency investment scam are encouraged to file a complaint with federal authorities at ic3.gov.
