One of the largest seizures to date has been carried out in operations against cryptocurrency fraud in the US.
The U.S. Attorney’s Office announced that its newly formed “Fraud Center Response Force” has frozen or seized more than $580 million in crypto assets linked to cryptocurrency investment fraud networks based in Southeast Asia.
U.S. Attorney Jeanine Ferris Pirro, in a statement alongside federal law enforcement and interagency partners, said the freezing and seizure of over $580 million in crypto assets in just three months was a critical step in the fight against crypto fraud networks originating from Southeast Asia. These funds were allegedly stolen from U.S. investors by China-based transnational criminal organizations (TCOs).
According to authorities, these criminal networks target American victims using social engineering methods. Scammers gain trust by contacting victims through social media platforms and text messages, then persuade them to buy real crypto assets. In the final stage, investors are defrauded by being directed to transfer money to fake crypto investment platforms. US officials estimate that approximately $10 billion is stolen from Americans annually through this method.
This method, known as “pig butchering,” involves fraudsters “feeding” their victims over a long period to gain their trust before carrying out high-stakes scams. The operation specifically targets fraud centers operating in Myanmar, Cambodia, and Laos. According to reports, some individuals working at these centers are victims of human trafficking, held captive by armed groups, and forced to target Americans. It has also been noted that in some Southeast Asian countries, the income generated from these scams reaches almost half of the national gross domestic product.
*This is not investment advice.