A newly established US Scam Center Strike Force has frozen, confiscated, or initiated forfeiture proceedings on more than $580 million in cryptocurrency connected to cross-border fraud networks, in what authorities describe as one of the most significant coordinated actions yet against crypto-driven “pig butchering” schemes.

Fake trading platforms

According to a Feb. 26 announcement from the United States Attorney’s Office for the District of Columbia, which operates under the United States Department of Justice, the cases center on scam operations largely based in Southeast Asia and allegedly tied to Chinese criminal organizations. The enforcement actions targeted organized groups accused of orchestrating romance and investment frauds that persuaded victims to send digital assets to sham trading platforms.

So-called “pig butchering” scams typically involve fraudsters building trust with targets over weeks or months before steering them into fraudulent crypto investment schemes. In recent years, these operations have spread worldwide, costing victims billions of dollars.

Gaining victims’ trust

“The scammers identify their targets, build trust, and encourage them to invest in legitimate cryptocurrency, only to later deceive them into transferring those funds to fraudulent crypto investment websites and apps,” the US Attorney’s Office said in its statement. Officials also noted that many individuals working inside scam compounds are themselves victims of human trafficking, reportedly detained, abused, and monitored by armed guards.

The Justice Department added that the crackdown was carried out in coordination with the Federal Bureau of Investigation and the United States Secret Service.