DOJ Launches Interagency Strike Force to Combat International Crypto Scams

TLDR

• DOJ’s new Strike Force targets international crypto scams tied to Chinese crime syndicates.
• “Pig butchering” scams cost U.S. victims an estimated $135 billion in 2024.
• DOJ seizes $480 million in stolen cryptocurrency, with $80 million set for return.
• Treasury Department sanctions Burmese militant group linked to cyber scam centers.
• Experts see Strike Force as a major shift toward proactive, coordinated crypto fraud response.

The U.S. Department of Justice (DOJ) has launched a new initiative aimed at tackling the growing threat of cryptocurrency scams. Known as the Scam Center Strike Force, this effort brings together multiple federal agencies, including the FBI, Secret Service, and U.S. Treasury, to dismantle international crypto fraud operations. These scams, often referred to as “pig butchering” schemes, have been linked to Chinese crime syndicates that target American citizens and defraud them of billions.

Coordinated Approach to Global Crypto Crime

The Strike Force is designed to strengthen cooperation among federal agencies in the fight against these scams, which have taken a significant toll on American consumers. According to Jeanine Pirro, the U.S. Attorney for the District of Columbia, these scams could have stolen as much as $135 billion from Americans in 2024 alone. The new initiative will focus on identifying the leaders behind these operations, tracing stolen funds, and seizing U.S. infrastructure that facilitates the scams.

As part of the announcement, Pirro revealed that the DOJ had already seized $480 million worth of cryptocurrency stolen from victims. This includes a recent seizure of $80 million that the DOJ aims to return to the victims. The government intends to continue its efforts to disrupt the operations of international scam rings and recover as much stolen cryptocurrency as possible.

International Impact and Sanctions

The DOJ’s efforts go beyond just targeting criminal organizations within the U.S. The Treasury Department also announced sanctions on a Burmese militant group linked to a cyber scam center. This group has been accused of forcing human trafficking victims to work in scam operations. The government’s actions indicate a broader international strategy to shut down these illicit operations at every level.

Experts in the field of crypto security have welcomed the launch of the Scam Center Strike Force, seeing it as a significant shift toward a more proactive, coordinated response to global crypto fraud. Previously, federal efforts were seen as reactive and piecemeal. Now, with a unified front across agencies, the U.S. government aims to dismantle criminal networks and disrupt their operations on a global scale.

The post DOJ Launches Interagency Strike Force to Combat International Crypto Scams appeared first on Blockonomi.