US federal prosecutor Jeanine Ferris Pirro announced that authorities have seized over $580 million in cryptocurrencies linked to crypto fraud networks originating from Southeast Asia. This development marks an important stage in the United States’ fight against cross-border cryptocurrency fraud.
Scam Center Strike Force Operation and Targeted Fraud Methods
Scam Center Strike Force, established within the Ministry of Justice, targets cryptocurrency-focused investment and trust frauds. It is reported that these networks, which are especially linked to China-based transnational criminal organizations, target US citizens through social media and text messages and make billions of dollars in illicit profits every year. Current estimates put Americans’ annual losses at $10 billion.
“Pig Butchering” Method and Regional Dynamics
Authorities state that after developing long-term relationships with the victims, the fraudsters manipulated various cryptocurrency investments, and the money was transferred to fake trading platforms. It was stated that, especially in the systems established in some Southeast Asian countries such as Burma, Cambodia and Laos, workers are forced to work and forced to commit fraud with the threat of violence. It was stated that the income obtained from fraud in these regions has an important place in the local economy.
Authorities are focusing on key figures in criminal networks and money launderers. It was stated that crypto assets moved through blockchain transactions were traced through exchanges and wallets, and efforts were continuing to cut transfer points and prevent access to goods.
Jeanine Ferris Pirro stated that more than 578 million dollars of crypto money was frozen and seized in just three months, and the process was initiated to return these money to the victims through judicial means.
Jeanine Ferris Pirro announced that an important progress has been made regarding the process and that the work carried out through the courts will be focused on the return of the seized cryptocurrencies to the victims.
Cooperation and Defense Structure
Scam Center Strike Force; It operates with the participation of many institutions, including the U.S. Attorney’s Office for the District of Columbia, different units of the Department of Justice, the Federal Bureau of Investigation, the U.S. Secret Service and the Criminal Investigations unit of the Internal Revenue Service. The U.S. Attorney’s Offices for the Rhode Island and Western District of Washington also support this initiative. It was announced that the studies carried out together focused on the infrastructure, financial channels and leadership structure of fraud networks.
The Ministry of Justice stated that operations against the money laundering routes, technical infrastructures and organizational structures of the fraud networks targeted by the initiative are continuing.
In another recent report, it was stated that illegal crypto addresses would amount to $154 billion in 2025. This figure means a 162 percent increase compared to the previous year. The report reveals that states such as Russia, Iran and North Korea intensively use blockchain infrastructure for the purpose of circumventing sanctions, money laundering and large-scale theft.
The report also noted that stablecoin transactions accounted for 84 percent of these illegal transfers. It was also emphasized that “money laundering as a service” and similar infrastructures offered by China-based money laundering networks have become widespread. While illicit activity still accounts for a small share of total transfer volume, its broadening scope and geopolitical dimension point to an area of increasing risk for regulators and law enforcement.
