US Freezes $1 Billion in Crypto as Scam Networks Spread Worldwide
Key Takeaways
Investigators identified about 800 U.S. victims of an alleged dating scam.Authorities seized 700 fraudulent cryptocurrency investment websites.Pirro sought extradition of six defendants in the Madagascar case.
Crypto Restraints Cross $1 Billion as Crackdown Expands
More than $1 billion in cryptocurrency tied to fraud and scams was restrained, U.S. Attorney Jeanine Ferris Pirro for the District of Columbia said Oct. 27. The Justice Department’s Scam Center Strike Force expanded its global reach as Chinese-linked criminal networks spread into Africa and Europe.
Pirro stated:
“For the last year, the Strike Force has fought hard against the compounds in Southeast Asia facilitating these scammers, to the tune of $1 billion in cryptocurrency restrained.”
She added: “My Strike Force will expand and grow, and follow the scammers to Africa, India, Europe, and wherever they try to plant their operations.”
Launched in November 2025, the strike force had reported more than $580 million in crypto freezes, seizures, and forfeitures within its first three months. Other actions included the seizure of 700 fraudulent investment websites and Telegram channels supporting the schemes.
A September operation against Xinbi Guarantee, a marketplace allegedly serving scam operators, raised cumulative crypto restraints to approximately $938 million. Restraints restrict the use or transfer of assets pending legal proceedings and potential victim compensation.
Across the broader crackdown, private-sector efforts included Meta’s reported removal of 17.3 million scam accounts, OpenAI’s cooperation commitment, and research for a planned consumer-awareness campaign.
Alleged Dating Scam Targeted About 800 Americans
Six defendants were charged over an alleged Madagascar scheme involving fake non-fungible token investments. Participants allegedly posed as women seeking relationships and used fraudulent investment websites to persuade Americans to connect and fund their cryptocurrency wallets before secretly draining them.
Federal Bureau of Investigation (FBI) investigators identified approximately 74 wallets associated with about 800 U.S. victims. Stolen funds allegedly reached cryptocurrency accounts linked to China-based actors. The group had connections to Malaysia and China and allegedly opened the compounds in Madagascar in early 2025.
Chui Kok Wa, identified by prosecutors as the alleged scheme’s leader, was charged with conspiracy to commit wire fraud. His phones contained employment contracts with overnight work schedules aligned with U.S. hours and bonuses tied to stolen funds.
US Pursues Suspects as Scam Networks Cross Borders
The United States and Britain signed an agreement Sept. 3 providing for parallel investigations and information sharing against scam networks. Partners included the Crown Prosecution Service, which prosecutes criminal cases in England and Wales, and the National Crime Agency, Britain’s lead agency against serious and organized crime.
Separately, Zheng Zhao’s extradition from the Netherlands brought him before a California court Oct. 23. That case involved 174 identified U.S. victims of an alleged Cambodian investment scheme and falls under the Justice Department’s Cyber-Enabled Scam Initiative.
In Madagascar, an August FBI deployment supported local police targeting 13 compounds, where more than 3,200 electronic devices were seized. U.S. officials described obstacles to interviews and suspects’ repatriation to China before the investigation concluded. Pirro called for the six defendants’ extradition.
The Justice Department described the strike force’s scope:
“The Strike Force targets cryptocurrency investment fraud, cyber-enabled fraud, human trafficking, and money laundering operations that have cost American victims billions of dollars.”
Authorities also obtained a material witness warrant seeking interviews with 15 employees who accused Wa of trafficking and abusing them. Such warrants authorize arrest to secure important testimony when obtaining a witness’s attendance through a subpoena may be impracticable. The Justice Department reported that those employees were believed to remain jailed in Madagascar.
