U.S. DOJ freezes $701M in crypto tied to global scam networks

U.S. authorities have frozen more than $701 million in cryptocurrency tied to investment scams targeting Americans as part of an ongoing crackdown.

The U.S. Department of Justice said Thursday that the funds were restrained through coordination with crypto exchanges and legal action, as part of efforts led by its Scam Center Strike Force. Law enforcement agencies working alongside the unit focused on networks operating scam centers aimed at U.S. victims.

“The Scam Center Strike Force continues its work to identify, seize, and forfeit funds involved in money laundering related to scams, so that funds can be returned to victims whenever possible,” the agency said.

A significant portion of the restrained assets comes as authorities expand the use of confiscated crypto. In March last year, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, funded in part through seized digital assets.

Scam networks, recruitment channels dismantled

Across Southeast Asia, enforcement actions have begun to disrupt the infrastructure behind these schemes. Authorities confirmed the seizure of a Telegram channel used to recruit individuals into a scam center based in Cambodia, where job seekers were often lured under false pretenses.

Investigators also took down at least 503 fake investment websites. Those domains, which previously displayed fabricated dashboards and false returns to convince users to deposit funds, now show seizure notices informing visitors that law enforcement has taken control.

Earlier enforcement activity had already pointed to how these operations function. In December 2025, U.S. authorities seized domains tied to the Tai Chang compound in Burma, where platforms mimicked legitimate trading services and directed victims to download malicious apps before extracting funds.

Court filings unsealed alongside the latest action name two Chinese nationals, Huang Xingshan and Jiang Wen Jie, accused of running a crypto fraud operation from the Shunda compound in Burma. That site had been seized in November 2025 by the Karen National Liberation Army, exposing links between armed groups and scam networks.

Pressure has also extended to intelligence gathering. The U.S. Department of State has offered a $10 million reward for information that could disrupt the Tai Chang scam centers, which investigators have linked to organized crime activity in the region.

Global operations step up coordination

Outside the U.S., similar efforts have been underway to curb crypto-related fraud. Recently, the Singapore Police Force disclosed that a one-month operation between March 16 and April 15 prevented more than $2.86 million in potential losses.

Working with exchanges such as Coinbase, Gemini, Independent Reserve, and regional platform Coinhako, authorities were able to identify victims early and intervene. Blockchain analytics firms TRM Labs and Chainalysis supported the effort by tracing suspicious transactions.

“The operation’s success stemmed from the rapid exchange of information between the police and participating cryptocurrency exchanges, which enabled swift victim identification and immediate intervention,” Singapore police said.

“Officers conducted over 90 direct interventions, contacting scam victims both by telephone and in-person to prevent further financial losses,” they added.

Rising complaints continue to underline the scale of the issue. The Federal Bureau of Investigation reported in April that it received more than one million cybercrime complaints in 2025, with total losses reaching about $21 billion.

Southeast Asia remains central to many of these operations. Scam compounds across countries such as Myanmar, Cambodia, and Laos often rely on trafficked or coerced workers, with crypto investment fraud emerging as one of their most profitable activities.