U.S. Seizes $580M in Crypto from Chinese Investment Scams

U.S. authorities have seized and frozen more than $580 million in cryptocurrency linked to Chinese transnational criminal organizations running investment scams that target Americans, officials announced this week. The action, completed within three months, was led by the Scam Center Strike Force, a multiagency task force based in Washington, D.C., involving the U.S. Attorney's Office for the District of Columbia, the Department of Justice's Criminal Division, the Federal Bureau of Investigation, the U.S. Secret Service, and the Internal Revenue Service's Criminal Investigation unit.

The seized digital assets stem from large-scale cryptocurrency investment frauds and confidence scams that exploit U.S. residents through social media platforms, messaging apps, and websites. Prosecutors estimate these operations drain nearly $10 billion annually from victims across the country. The schemes often begin with unsolicited contacts to build personal relationships over weeks or months, a tactic known among fraudsters as "pig butchering," where scammers foster trust before directing victims to transfer funds into fraudulent investment platforms or applications. Once invested, the money...