US DOJ strike force ‘restrains’ $701M in crypto in investment scam crackdown

The US Department of Justice revealed on Thursday that it has frozen more than $701 million in crypto linked to investment scams targeting Americans as part of an ongoing operation.

The US Scam Center Strike Force and its law enforcement partners targeted scam centers aimed at Americans, the US Attorney’s Office for the District of Columbia said Thursday. The cryptocurrency was “restrained” through voluntary actions by crypto exchanges and legal processes, it added.

“The Scam Center Strike Force continues its work to identify, seize, and forfeit funds involved in money laundering related to scams, so that funds can be returned to victims whenever possible,” it said.

The frozen cryptocurrency is a sizable amount. In March last year, US President Donald Trump signed an executive order for a Strategic Bitcoin Reserve and a Digital Asset Stockpile funded through confiscated crypto.

Telegram channel seized, fake investment websites taken down

The task force also seized a Telegram channel used to recruit unsuspecting job seekers for a crypto scam center in Cambodia, according to the announcement.

The seized Telegram channel. Source: Department of Justice

At least 503 fake investment websites that coaxed victims into depositing crypto were also taken down and replaced with a splash page informing visitors that the domain has been seized by law enforcement.

Meanwhile, criminal complaints and arrest warrants against two Chinese nationals, Huang Xingshan and Jiang Wen Jie, were also unsealed.

The pair is accused of managing a crypto investment fraud operation at the Shunda compound in Burma, which was seized by the Karen National Liberation Army in November 2025.

In connection with the strike force’s operations, the US Department of State has offered a $10 million reward for any information that disrupts the Tai Chang scam centers in Burma.

Source: US Department of State

Global law enforcement crackdowns

The US isn’t the only country cracking down on crypto scammers. The Singapore Police Force’s Anti-Scam Center and Cyber Investigation Branch said Thursday that they ran a one-month operation from March 16 to April 15 that prevented more than $2.86 million in potential financial losses.

The action involved collaboration with several crypto firms and exchanges, including Coinbase, Coinhako, Gemini and Independent Reserve, as well as blockchain analysis companies TRM Labs and Chainalysis, which helped identify victims.

“The operation’s success stemmed from the rapid exchange of information between the police and participating cryptocurrency exchanges, which enabled swift victim identification and immediate intervention,” the Singapore police said.

“Officers conducted over 90 direct interventions, contacting scam victims both by telephone and in-person to prevent further financial losses,” they added.

The FBI reported in April that it had received more than a million complaints in 2025, totaling about $21 billion in losses from cybercrime.

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