U.S. restrains $700M in crypto as crackdown targets global scam networks

U.S. authorities have restrained more than $700 million in cryptocurrency and seized over 500 fraudulent investment websites, as part of a coordinated crackdown on large-scale online scam networks operating across Southeast Asia.

The enforcement action, announced on 23 April, also led to the seizure of a Telegram channel used to recruit workers into scam operations, alongside charges against two Chinese nationals accused of running fraud centers in Myanmar and Cambodia.

Crackdown targets industrial-scale scam operations

According to investigators, the operation focused on so-called “pig butchering” schemes, where victims are gradually manipulated into investing in fake platforms before being defrauded of large sums.

Authorities said the networks operated through a combination of social engineering, impersonation tactics, and controlled digital platforms designed to mimic legitimate financial services.

In one case cited, a victim lost approximately $3 million in a single scam. Overall, officials dismantled 503 websites linked to fraudulent investment schemes and disrupted infrastructure used to target victims globally.

The investigation also uncovered the use of messaging platforms such as Telegram to approach victims and recruit workers into the scam ecosystem.

Links to forced labor and organized crime

Beyond financial fraud, the case highlights the growing overlap between crypto-enabled scams and organized crime networks.

Authorities said many individuals working in these operations were lured with fake job offers, only to have their passports confiscated upon arrival. 

Some were reportedly forced to participate in scams under threats of violence, pointing to a broader system of exploitation behind the digital fraud economy.

The alleged operators are accused of managing these compounds remotely while coordinating financial flows through cryptocurrency networks.

Crypto remains central to fraud — and enforcement

The crackdown builds on findings from the FBI’s Internet Crime Complaint Center report released earlier this month, which showed crypto-linked fraud exceeding $11 billion in 2025, with many operations traced to organized networks in Southeast Asia.

While digital assets continue to serve as the primary transaction rail for these schemes, the case also highlights how blockchain transparency enables authorities to track and restrain funds in real time.

Investigators worked with crypto service providers to identify and freeze assets before they could be further dispersed, reinforcing a growing trend of collaboration between law enforcement and centralized actors within the crypto ecosystem.

Final Summary

• U.S. authorities have restrained over $700 million in crypto and seized more than 500 scam websites targeting victims worldwide.
• The crackdown reflects growing coordination between law enforcement and crypto platforms, as fraud networks expand across Southeast Asia.