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The US Attorney for the District of Columbia, Jeanine Ferris Pirro, said this week that a federal strike force has frozen and seized more than US$580 million in cryptocurrency. Prosecutors linked the assets to transnational fraud networks behind pig butchering scams. The unit has operated since November 2025. Investigators tied the schemes to organized crime groups working out of compounds in Myanmar, Cambodia, and Laos. The US officials estimate that these Southeast Asia-based networks cost Americans nearly US$10 billion each year.
The seizure equals about six weeks of estimated annual loss. Authorities secured the assets through court-admissible seizures during a single quarter. The Justice Department will now move into federal forfeiture proceedings.
Pig butchering schemes begin with contact on social media or messaging apps. Scammers often pose as a wrong number, a LinkedIn contact, or a romantic interest.
They build trust over time. The conversations can last for days, weeks, or even months. The goal is to create a sense of comfort before money enters the discussion.
After that, the scammer introduces cryptocurrency investing as if it came up naturally. The victim then receives directions to a fake investment platform that shows fabricated profits. In some cases, the platform allows a small withdrawal early on. That step helps build confidence. Later, the victim faces pressure to send a much larger transfer, often under claims of a limited opportunity or a tax payment. Once the money moves, the platform disappears, and the contact cuts off communication.
This slow grooming process sets pig butchering apart from simpler crypto scams. It also requires a larger operation. That is why the compounds behind these schemes rely on trafficked labor.
The crackdown comes as Chinese-language money laundering networks take on a larger role in illicit crypto flows. In January, blockchain analytics firm Chainalysis estimated that these networks processed US$16.1 billion in cryptocurrency during 2025.
That total works out to roughly US$44 million each day across more than 1,799 active wallets. Chainalysis also said these networks handled about 20% of identified illicit crypto laundering activity last year.
Since 2020, the report said, inflows into these laundering systems have grown faster than deposits to centralized exchanges. That trend points to a larger and more organized laundering structure growing alongside the wider crypto market.
As a result, pressure has increased on exchanges, custodians, and stablecoin issuers. They face growing demands to strengthen monitoring of wallet activity and cross-border transfers linked to high-risk jurisdictions.
Read More: Senators Introduce SAFE Crypto Act to Combat Crypto Scams and Fraud
The Justice Department’s next step is forfeiture litigation in federal court. These cases often take months or years. Investigators must trace ownership, prove criminal links, and sort through victim claims.
The $580 million seizure ranks among the larger publicly disclosed crypto-related fraud asset freezes. Losses from these scams still run into the billions each year.
Even so, actions at this scale show that law enforcement is going after the financial systems that keep these networks running, not just the individuals involved. If authorities can keep intercepting funds before they scatter, can they finally disrupt the machinery behind these scams?
The DOJ seized $580 million in cryptocurrency tied to pig butchering scams linked to transnational fraud networks in Southeast Asia. The case shows how these operations use trust, fake platforms, and laundering systems at scale. The next major test now shifts to federal forfeiture and victim recovery.
