US Launches New Strike Force to Tackle Southeast Asian Crypto Scam Centers

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US federal authorities, including the Department of Justice, the FBI, and the US Secret Service, announced on November 12 the creation of the Scam Center Strike Force. The new strike force aims to disrupt extensive cryptocurrency investment fraud operations run from Southeast Asia that target US citizens.

The US Attorney's Office says Chinese transnational criminal organizations (TCOs) operate “pig-butchering” investment fraud schemes from Southeast Asia against Americans. They gain the trust of victims via social media or text messaging before convincing them to purchase cryptocurrency and invest it in fake platforms. Once invested, the victims’ money is funneled into other jurisdictions.

These schemes are believed to defraud US victims of nearly $10 billion a year, with scam-generated revenue making up nearly half of national GDP in some of the countries where these scam compounds are based. The workers in these compounds are often victims of human trafficking held against their will.

The Strike Force will focus on identifying and prosecuting senior TCO operatives and affiliates, as well as seizing US-based infrastructure used to facilitate the fraud. Initial actions already include digital asset seizures exceeding $401.6 million and the filing of forfeiture proceedings for roughly $80 million in stolen funds.

Teams have already conducted operations in Myanmar and investigated networks in Bali. The FBI has also deployed agents to Bangkok to work with the Royal Thai Police in the region.