United States authorities have announced a major enforcement action, seizing over $580 million in digital assets linked to transnational 'pig butchering' investment scams operated by Chinese organized crime networks based in Southeast Asia. The operation was led by the newly formed Scam Center Strike Force, an initiative run by the United States Attorney’s Office for the District of Columbia.
The fraud networks are said to operate from compounds in Myanmar, Cambodia, and Laos. The 'pig butchering' scams involve criminals establishing long-term relationships with victims via social media before tricking them into investing in fraudulent cryptocurrency schemes, with funds sent directly to wallets controlled by the criminals. Authorities estimate such scams cost Americans nearly $10 billion annually, labeling it one of the fastest-growing financial crimes in the digital asset sector.
The operation involved several federal agencies, including the Federal Bureau of Investigation (FBI), the United States Secret Service, and the United States Department of the Treasury. These agencies collaborated to trace blockchain transactions and seize the illicit assets. Officials emphasized that international coordination remains key to dismantling these schemes.
This seizure is part of a broader crackdown on crypto-related crime. In October 2025, U.S. authorities confiscated approximately 127,000 BTC (worth about $15 billion) linked to Chen Zhi of the Prince Holding group, marking the largest crypto seizure in U.S. history. Furthermore, in January 2026, a Chinese national was sentenced to 46 months in prison for laundering $36.9 million from Cambodian scam centers.
Stablecoin issuer Tether has also played a role, reporting it has frozen $4.2 billion in tokens associated with illegal activity over the past three years, with approximately $61 million related specifically to pig butchering cases at the request of the Department of Justice.
The recent actions underscore a significant, coordinated government effort to combat global crypto crime through enhanced international collaboration and blockchain monitoring tools, aiming to minimize large-scale digital asset fraud worldwide.
