$580M in Crypto Seized as U.S. Targets Global Scam Networks

Crypto

$580M in Crypto Seized as U.S. Targets Global Scam Networks

In a major escalation of the fight against crypto-enabled fraud, U.S. authorities announced the seizure of more than $580 million in digital assets from Southeast Asia-based scam networks.

Key Takeaways

• $580M in crypto seized from Southeast Asia-based fraud networks in February 2026.
• U.S. crypto scam losses estimated at $10B per year; $1.5B taken in the first three quarters of 2025 alone.
• “Pig butchering” scams drive nearly half of crypto fraud cases and the majority of losses.
• Around 27,000 criminal groups operate globally, with ties to forced labor in regional scam compounds.
• The crackdown is led by the U.S. Department of Justice and partner agencies, using blockchain forensics to seize funds and pursue restitution.

The action, revealed in February 2026 by the Scam Center Strike Force, underscores the staggering scale of a criminal industry that continues to expand despite mounting enforcement pressure.

Officials say the recovered funds represent only a fraction of the broader damage. Americans are estimated to lose around $10 billion annually to crypto-linked fraud schemes. In just the first three quarters of 2025, scammers extracted roughly $1.5 billion from victims in the United States alone.

A Crisis Measured in Billions

The $580 million haul – collected in a single quarter – is equivalent to roughly six weeks of estimated annual losses, according to investigators. That comparison highlights how deeply entrenched and financially powerful these operations have become.

Globally, authorities estimate that approximately 27,000 active criminal groups are involved in fraud activity tied to an estimated $27.5 billion in exposure. Many of these networks operate across borders, leveraging shell companies, fake investment platforms, and increasingly sophisticated social engineering tactics.

One scam format dominates the landscape: so-called “pig butchering” schemes. These investment-based frauds, which often involve months of relationship-building before victims are persuaded to transfer funds, account for nearly half of all crypto-related scams and roughly 60% of total financial losses.

????U.S. FREEZES $580M IN CRYPTO FRAUD CASES

The U.S. Attorney‘s Office’s newly formed Scam Center Strike Force has seized over $580M tied to Southeast Asia-based crypto scams.

Officials estimate Americans lose nearly $10B per year to these fraud networks. pic.twitter.com/TnYwP56Y7r

— Coin Bureau (@coinbureau) February 27, 2026

The Human Cost Behind the Fraud

Beyond financial devastation, the crackdown has also drawn attention to a darker reality – the use of forced labor. Investigators estimate that around 200,000 individuals are being held in coercive conditions in so-called “fraud factories” across parts of Southeast Asia, particularly in regions of Myanmar, Cambodia, and Laos.

These compounds often operate under the control of transnational criminal organizations with links to Chinese networks. Workers are reportedly trafficked, threatened, and compelled to run online scam operations targeting victims globally.

How the Strike Force Operates

The interagency initiative, launched in November 2025, brings together resources from the U.S. Department of Justice, Federal Bureau of Investigation, United States Secret Service, and the United States Department of the Treasury.

Its strategy centers on three primary pillars: dismantling operational infrastructure, targeting the financial networks behind the schemes, and recovering funds for victims.

Recent operations have focused on disabling fraudulent investment domains and seizing crypto wallets connected to scam compounds, including those tied to the so-called Tai Chang Scam Compound. Authorities are also deploying advanced blockchain forensic tools to trace illicit transfers across chains and exchanges.

Victim restitution has become a central objective. Officials say that improved tracking capabilities now allow them to follow stolen funds through multiple wallets and cross-chain bridges, increasing the likelihood of returning at least part of the assets to affected individuals.

A Growing Battle in the Digital Economy

The scale of the seizures signals that enforcement agencies are becoming more aggressive – and more technologically capable – in pursuing crypto-based criminal networks. But the numbers also reveal a sobering reality: even record seizures represent only a small share of a rapidly expanding global fraud economy.

As digital assets become more mainstream, authorities warn that both investors and platforms will need to adopt stronger due diligence practices. The crackdown may mark a turning point in coordination and recovery efforts, yet the data suggests the broader fight against transnational crypto fraud is far from over.