- On Feb. 26, U.S. Attorney Jeanine Pirro announced that federal authorities have frozen and seized more than $580 million in cryptocurrency linked to Southeast Asian fraud networks tied to Chinese transnational criminal organizations.
- The funds were recovered through the Scam Center Strike Force, a multi-agency initiative led by the U.S. Attorney's Office for the District of Columbia and supported by the Department of Justice's Criminal Division, the Federal Bureau of Investigation, the United States Secret Service and the Internal Revenue Service Criminal Investigation Unit.
- The strike force is targeting scam compounds in Burma, Cambodia and Laos, focusing on dismantling operations and prosecuting high-level leaders involved in cryptocurrency investment fraud, commonly known as "pig butchering" scams.
- These fraud schemes use social media and text messaging to build trust with victims, persuade them to buy legitimate cryptocurrency and then direct them to transfer funds to fraudulent investment platforms.
- While legitimate Crypto Investment Funds (CIFs) are structured, professionally managed investment vehicles, pig butchering scams exploit the appearance of crypto investing to steal funds; authorities say many workers in scam compounds are themselves trafficking victims, and the U.S. government is seeking forfeiture of seized assets to return money to victims.
U.S. Attorney Jeanine Pirro announced on Feb. 26 that federal authorities have frozen and seized more than $580 million in cryptocurrency tied to transnational fraud operations in Southeast Asia.
Pirro, the U.S. Attorney for the District of Columbia, said the funds were recovered through the newly formed Scam Center Strike Force, a multi-agency initiative launched in November to combat cryptocurrency investment fraud and other confidence scams orchestrated by Chinese transnational criminal organizations (TCOs).
It brings together prosecutors and agents from multiple federal agencies, including the U.S. Attorney's Office for the District of Columbia; the Department of Justice's (DOJ) Criminal Division, specifically its Computer Crime and Intellectual Property Section, Fraud Section and Money Laundering, Narcotics and Forfeiture Section; as well as the Federal Bureau of Investigation (FBI), the U.S. Secret Service, and the Internal Revenue Service's (IRS) Criminal Investigation Unit. U.S. Attorney's Offices in the District of Rhode Island and the Western District of Washington are also participating.
The strike force, led by Assistant U.S. Attorney Karen P. Seifert, is focused on dismantling scam centers operating in countries including Burma, Cambodia and Laos, and on identifying and prosecuting high-level leaders affiliated with Chinese organized crime groups. This, in turn, has seized more than $580 million in cryptocurrency.
"In only three months, we have made significant progress, freezing, seizing and forfeiting cryptocurrency worth more than $580 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 Pirro.
Pirro emphasized that the seizure of digital assets is only one step in a broader legal process. Her office will seek forfeiture of the frozen funds in court to return as much money as possible to victims.
"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," Pirro added.
The cryptocurrency seizure team includes Assistant U.S. Attorneys Rick Blaylock and John Borchert, working alongside federal agents from specialized cyber and financial crime units across the country.
How fraudsters exploit the promise of digital assets to steal millions
BrightU.AI's Enoch defines Crypto Investment Funds (CIFs) as legitimate pooled investment vehicles managed by professionals to generate returns through diversified cryptocurrency portfolios. In contrast, cryptocurrency investment fraud schemes known as "pig butchering" scams are criminal operations designed to deceive victims and steal their funds, often through fabricated investment platforms.
While both concepts reference cryptocurrency investing, CIFs are presented as structured financial products, whereas pig butchering schemes are fraudulent enterprises that misuse the appearance of investment opportunities to facilitate theft. The fraud scheme "fatten up" victims before stealing from them.
Using U.S.-based social media platforms and text messages sent to American cell phones, fraudsters initiate contact, build trust over time and persuade victims to purchase legitimate cryptocurrency. Victims are then directed to transfer their assets to fraudulent investment websites or mobile applications controlled by the scammers.
Authorities say many individuals working inside these compounds are themselves victims of human trafficking. They are often held against their will, subjected to abuse and guarded by armed groups while being forced to carry out scams targeting Americans.
In some Southeast Asian nations where these operations are concentrated, the scale of scam-generated revenue is so vast that it accounts for nearly half of the country's gross domestic product.
Watch this video that discusses the strange deaths of crypto bigwigs.
This video is from the Truther Network channel on Brighteon.com.
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