US DOJ Seized and Froze $580M Crypto From China Crime Ring

What to Know

$578 million in digital assets were frozen, seized, and forfeited by the US Department of Justice in connection with Chinese criminal networks
The Scam Center Strike Force, created by US Attorney Jeanine Pirro in November, led the three-month enforcement campaign
Crypto impersonation scams surged by roughly 1,400% year over year in 2025, according to Chainalysis data
US authorities may hold as much as 328,372 BTC from various criminal seizures, though the seized funds are earmarked for victim restitution rather than the Strategic Bitcoin Reserve

The US DOJ seized and froze more than $578 million in cryptocurrency linked to Chinese transnational criminal organizations, the Justice Department announced on Thursday. The actions were carried out over three months by the District of Columbia's Scam Center Strike Force, targeting Southeast Asian crypto fraud that used websites and social media to defraud American residents.

DOJ Scam Center Strike Force Leads Crypto Crackdown

The Scam Center Strike Force is a task force established by US Attorney Jeanine Pirro in November to combat cryptocurrency fraud from Southeast Asia. The frozen and seized digital assets had been stolen by Chinese transnational criminal organizations using websites and social media to target US-based victims, according to the Justice Department.

Pirro, a former Fox News host now serving as US Attorney for the District of Columbia, said her office would seek to forfeit the funds and return them to victims.

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.
— Jeanine Pirro, US Attorney for the District of Columbia

Will Seized Crypto Go to the Strategic Bitcoin Reserve?

Pirro's comments signaled that the seized funds will not go toward the Strategic Bitcoin Reserve or digital asset stockpile President Donald Trump established via executive order in March 2025. The DOJ plans to pursue forfeiture and return assets to scam victims instead.

According to BitcoinTreasuries.NET, US authorities may hold as many as 328,372 Bitcoin from various criminal seizures. The White House had not publicly commented on the stockpile's size as of Friday.

Crypto Impersonation Scams Surge in 2025

The DOJ's enforcement push comes amid a dramatic spike in cryptocurrency fraud. Blockchain analytics firm Chainalysis reports that impersonation scams tied to crypto rose by approximately 1,400% year over year in 2025, with the average amount stolen jumping by 600% over the same period.

Many of the schemes involved pig butchering and investment scams run by criminal networks in Southeast Asia, luring victims through social media before extracting large sums of cryptocurrency.

Federal Sentencing Signals Tough Enforcement Ahead

The crackdown is part of a broader enforcement pattern. Earlier this month, a federal judge sentenced an individual to 20 years in prison for orchestrating a scam that stole more than $73 million from victims, many of whom resided in the United States.

As the DOJ continues pursuing digital asset fraud through the Scam Center Strike Force, observers anticipate further large-scale seizures. Rising scam volumes and growing enforcement capacity suggest crypto prosecutions will stay a top priority through 2026.