Pirro Announces Major Seizure Of China-Based Cryptocurrency
In a major blow to foreign-based cybercriminal networks, U.S. Attorney Jeanine Pirro announced that federal authorities have frozen and seized more than $580 million in cryptocurrency tied to sprawling scam operations run by Chinese transnational criminal organizations.
The announcement, detailed in a Justice Department press release late last month, marks a significant milestone for the newly formed Scam Center Strike Force — a coordinated federal initiative aimed at dismantling Southeast Asian fraud syndicates that have siphoned billions from American victims.
According to the DOJ, the seized funds were stolen through cryptocurrency investment fraud schemes and other confidence scams that target everyday Americans. These operations, often run out of compounds in Burma, Cambodia, and Laos, rely heavily on U.S.-based internet platforms and social media networks to lure victims into fraudulent crypto investments.
Recent estimates suggest that the broader scam industry is draining nearly $10 billion annually from Americans.
“In November, I announced the establishment of our Scam Center Strike Force to spearhead this effort.” In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $580 million from these criminals.
Pirro made clear that the targets are not small-time fraudsters, but sophisticated networks linked to Chinese organized crime.
“These criminals don’t care about your identity, beliefs, or breakfast habits—all they care about is stealing from honest Americans to enrich Chinese organized crime.”
“My office and our law enforcement partners around the country are taking this threat head on. Seizures of cryptocurrency is one important part of the Scam Center Strike Force’s work.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,” she added.
Federal officials say many of the fraud schemes fall under the category of Cryptocurrency Investment Fraud (CIF), including so-called “pig butchering” scams — a term used by criminals to describe the process of “fattening up” victims through weeks or months of trust-building before convincing them to transfer large sums of money to fake cryptocurrency platforms.
Scammers typically initiate contact through text messages or social media apps, posing as potential romantic partners, business contacts, or financial mentors. Victims are persuaded to invest in what appear to be legitimate cryptocurrency opportunities, only to later discover that the websites and applications are entirely fraudulent.
Disturbingly, the DOJ noted that many individuals working inside these scam compounds are themselves victims of human trafficking. Reports indicate that trafficked workers are held against their will, abused, and guarded by armed groups while being forced to target American citizens online. In some Southeast Asian nations, revenue from these illicit operations reportedly accounts for nearly half of the country’s gross domestic product.
The Scam Center Strike Force brings together a wide coalition of federal agencies, including the U.S. Attorney’s Office for the District of Columbia, the Department of Justice’s Criminal Division — encompassing the Computer Crimes & Intellectual Property Section, the Fraud Section, and the Money Laundering, Narcotics, and Forfeiture Section — as well as the Federal Bureau of Investigation and the United States Secret Service.
Additional support comes from the U.S. Attorney’s Offices for the District of Rhode Island and the Western District of Washington, along with the Internal Revenue Service’s Criminal Investigation Unit.
“The cryptocurrency seizure team is led by Assistant United States Attorneys Rick Blaylock and John Borchert, along with partners from CCIPS. From the U.S. Secret Service, these cryptocurrency seizure matters are handled by the Global Investigative Operation Center and Field Offices in San Francisco, San Diego, Memphis, Washington D.C., Nashville and Seattle Field Offices,” the release added.
Under President Donald J. Trump’s second term, federal authorities have intensified efforts to confront foreign criminal enterprises exploiting American technology platforms and financial systems. The administration has repeatedly emphasized national sovereignty, law enforcement cooperation, and aggressive asset forfeiture as tools to protect U.S. citizens from overseas fraud networks.
With more than half a billion dollars already frozen, officials say this is only the beginning of a broader campaign to dismantle Chinese-linked scam centers and return stolen savings to American victims.