US DC Scam Center Strike Force Seizes and Freezes $580 Million in Crypto from Southeast Asian Pig Butchering Networks

The US Attorney’s Office for the District of Columbia has announced that the Scam Center Strike Force has seized and frozen over $580 million in cryptocurrency from transnational criminal networks operating pig butchering scams out of compounds in Burma, Cambodia, and Laos.

The seizures, announced on March 27, 2026, target funds derived from social engineering schemes that have generated billions in victim losses, with the Department of Justice (DOJ) seeking to forfeit the assets and return them to affected individuals through legal proceedings.

Strike Force Coordination and Mandate

The Scam Center Strike Force was established in November 2025 as a multi-agency task force targeting transnational criminal networks responsible for large-scale cryptocurrency fraud. The initiative coordinates resources across multiple federal agencies to identify, freeze, and seize assets derived from scam operations.

Participating agencies in the Strike Force include:

• Department of Justice (DOJ) – Leading prosecution and forfeiture proceedings

• Federal Bureau of Investigation (FBI) – Conducting investigations into criminal networks

• US Secret Service – Providing financial crime and cyber investigative capabilities

• US Department of the Treasury – Implementing sanctions and tracking illicit financial flows

• Additional government agencies – Supporting intelligence gathering and interagency coordination

The Strike Force specifically targets organized criminal groups operating “pig butchering” scam compounds in Southeast Asia, a region that has emerged as a primary hub for such fraudulent activities.

Mechanics of Pig Butchering Scams

Pig butchering scams involve systematic social engineering techniques designed to extract cryptocurrency from victims through fraudulent investment schemes.

Typical operational patterns include:

• Initial Contact: Scammers establish relationships with victims through dating apps, social media, or messaging platforms

• Trust Building: Perpetrators cultivate trust over weeks or months through regular communication

• Investment Lures: Victims are encouraged to purchase cryptocurrency and invest through fake trading platforms or applications controlled by scammers

• Fund Diversion: Once victims deposit funds, scammers block access to accounts and abscond with the cryptocurrency

The scam compounds in Southeast Asia frequently rely on coerced labor, with victims of human trafficking forced to operate fraudulent schemes. In September 2024, Interpol elevated the threat posed by these operations to a global priority, citing the scale of victim harm and the involvement of transnational criminal networks.

International Scope and Sanctions Framework

The US Treasury’s Office of Foreign Assets Control (OFAC) has taken coordinated action against entities involved in Southeast Asian scam operations.

Previous enforcement actions include:

• September 2025 sanctions against 19 entities across Burma and Cambodia involved in scam compound operations

• Designations targeting networks responsible for victim losses exceeding $10 billion in 2024 alone

• Freezing of US-based assets belonging to sanctioned individuals and entities

These actions complement the Strike Force’s cryptocurrency seizures by restricting the ability of scam networks to access the traditional financial system and launder proceeds through regulated channels.

Humanitarian Concerns and Labor Trafficking

The scam compounds targeted by the Strike Force have been linked to severe human rights abuses, according to international observers. Amnesty International issued a warning in February 2026 stating that mass escapes of workers from Cambodian scam compounds have created a “humanitarian crisis,” with trafficked victims fleeing abuses including rape and torture.

The intersection of cryptocurrency fraud and human trafficking has elevated the priority of these investigations, as victims of forced labor are compelled to operate scam schemes that defraud individuals primarily in Western countries, including the United States.

Scale of Fraud and Seizure Impact

While the $580 million in seizures announced represents a significant operational achievement, blockchain analytics indicate this constitutes a fraction of total fraud activity.

According to data from blockchain analytics firm Cyvers:

• Approximately 27,000 active criminal groups have been identified operating worldwide

• Total fraud exposure across the cryptocurrency ecosystem exceeds $27.5 billion

• Detected illicit value flows continue to show year-over-year increases despite enforcement efforts

Deddy Lavid, CEO of Cyvers, noted that while the seizures are “operationally meaningful,” in the context of global crypto fraud they represent “only a fraction of the total activity we’re observing.”

Organizational Structure of Scam Networks

The announcement from the US Attorney’s Office referenced the involvement of “Chinese organized crime” in operating Southeast Asian scam networks. Blockchain analysis provides additional context on the organizational structure of these operations.

Analysis of the criminal infrastructure reveals:

• A “meaningful share” of scam compounds show operational, linguistic, financial, or routing ties to Chinese transnational criminal organizations (TCOs)

• Networks are “increasingly decentralized and hybrid in nature,” involving local operators in Southeast Asia

• Regional facilitators manage day-to-day operations in Cambodia, Myanmar, and Laos

• Cross-border laundering hubs distribute proceeds through multiple jurisdictions

• Core coordination layers typically operate on Chinese-language infrastructure with distinct financial routing patterns

This structure creates what analysts describe as a “multinational and operationally fragmented criminal ecosystem” where Chinese TCOs “appear to play a central coordination role” while execution occurs through regional networks.

Forfeiture and Victim Restitution Process

The US Attorney’s Office for the District of Columbia has stated its intention to pursue formal forfeiture of the seized cryptocurrency assets through the federal legal system.

The restitution framework includes:

• Judicial proceedings to establish that seized assets represent proceeds of criminal activity

• Identification and verification of victim claims through established DOJ processes

• Distribution of forfeited funds to affected individuals “to the maximum extent possible”

• Coordination with international partners where victims are located outside the United States

The forfeiture process requires court approval and may involve complex legal proceedings, particularly where assets have been moved through multiple jurisdictions or layered through mixing services and privacy protocols.

Frequently Asked Questions (FAQ)

What is the Scam Center Strike Force and what agencies are involved?

The Scam Center Strike Force is a multi-agency task force established in November 2025, coordinating the Department of Justice, FBI, Secret Service, US Treasury, and other federal agencies to target transnational criminal networks operating cryptocurrency fraud schemes from Southeast Asian compounds.

How do pig butchering scams operate and why are they called that?

Pig butchering scams involve scammers building trusting relationships with victims over weeks or months—“fattening them up”—before convincing them to invest in fake cryptocurrency platforms. Once victims deposit significant funds, scammers block access and steal the assets. The term derives from the practice of fattening a pig before slaughter.

What happens to the seized cryptocurrency and can victims recover their funds?

The US Attorney’s Office will seek court authorization to forfeit the seized assets through federal legal proceedings. If successful, the DOJ intends to return forfeited funds to verified victims “to the maximum extent possible” through established restitution processes, though complex international money trails may complicate full recovery.