US Gov Seizes Over $580M in Crypto Tied to SE Asian Scams

U.S. federal authorities have seized more than $580 million in crypto assets connected to pig butchering fraud networks across Southeast Asia, according to the Justice Department. U.S. Attorney Jeanine Ferris Pirro confirmed on February 27 that the Scam Center Strike Force froze and confiscated the funds within three months of its formation, marking one of the largest cryptocurrency seizures tied to transnational scam operations.

DOJ Strike Force Targets Pig Butchering Networks

The Scam Center Strike Force was established in November to dismantle cryptocurrency investment and confidence schemes run by Chinese transnational criminal organizations. Officials said these groups use social media platforms and text messaging to target American victims, funneling billions of dollars annually through fraudulent channels. Government estimates place yearly losses to U.S. citizens at roughly $10 billion.

Pirro stated her office will pursue forfeiture through the courts and return recovered funds to victims. The initiative combines the U.S. Attorney's Office for the District of Columbia, the FBI, the U.S. Secret Service, and the IRS Criminal Investigation unit. Offices in Rhode Island and the Western District of Washington are also participating.

In only three months, we have made significant progress, freezing, seizing, and forfeiting cryptocurrency worth more than $578 million from these criminals.

— Jeanine Ferris Pirro, U.S. Attorney

What Are Pig Butchering Crypto Scams?

Pig butchering is a form of crypto fraud in which scammers cultivate trust-based relationships with victims before steering them toward bogus investment platforms. Targets are persuaded to purchase legitimate digital assets and then transfer those holdings to counterfeit trading interfaces controlled by criminal networks. By the time victims realize the deception, their funds have been siphoned through layered blockchain transactions.

These operations frequently run from fortified compounds in Burma, Cambodia, and Laos, according to U.S. officials. Some workers inside are trafficking victims coerced into executing scams under threat of violence. In certain areas, scam revenue accounts for a significant share of local economic output.

Investigators Trace Crypto Funds Across Blockchain

The Strike Force is focused on identifying senior figures within criminal hierarchies, including organizers and money launderers who route proceeds through blockchain transactions and shell accounts. Investigators are tracing funds across exchanges and wallets to disrupt cash-out points and freeze assets before dispersal.

The Justice Department said the task force will continue targeting infrastructure, financial channels, and leadership structures sustaining the fraud networks. Authorities view the $580 million crypto seizure as a starting point, signaling sustained pressure on transnational crime.

How Large Is the Illicit Crypto Economy in 2025?

Illicit crypto activity surged in 2025, according to data from blockchain analytics firm Chainalysis. Illicit addresses received at least $154 billion last year, a 162% year-over-year increase. Sanctioned entities drove much of the surge, with Russia, Iran, and North Korea exploiting blockchain infrastructure for sanctions evasion, money laundering, and large-scale digital asset thefts.

Stablecoins accounted for 84% of all illicit transaction volume, the Chainalysis report found. The analysis also highlighted the expansion of Chinese money laundering networks now offering laundering-as-a-service and full-stack illicit infrastructure to criminal clients. Despite the alarming growth, illicit activity still represents less than 1% of total crypto volume, though the escalating scale and geopolitical dimensions pose mounting risks for regulators, law enforcement, and national security agencies.