US Authorities Seize $580M in Crypto Linked to Chinese Crime Networks

US authorities seize $580M in crypto scam tied to Chinese crime networks behind pig butchering scams across Southeast Asia.

United States authorities announced a major action against global crypto fraud networks. The United States Department of Justice confirmed more than $580 million in digital asset seizures. These funds were linked to transnational scam groups. Therefore, investigators increased efforts to prevent crypto fraud on a large scale against Americans.

US Task Force Targets Southeast Asia Crypto Scam Networks

The seizures were carried out by a newly created Scam Center Strike Force. The initiative is run by the United States Attorney’s Office for the District of Columbia. Authorities formed the task force in November 2025 to coordinate investigations against global crypto scams.

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These fraud networks are said to be operating from compounds throughout Southeast Asia. Some key locations are Myanmar, Cambodia, and Laos. Criminal groups allegedly operate organized “pig butchering” investment scams from these areas.

Pig butchering scams are along the lines of long-term social manipulation of victims. Fraudsters establish a relationship with the targets by holding them in conversation over the internet. Later, they trick victims into investing in fraudulent cryptocurrency companies. As a result, victims send money directly to wallets owned by criminals.

Investigators said that many networks are connected with Chinese organized crime groups. These groups are often in contact with victims via American social media accounts. Therefore, authorities believe international coordination is still the key to breaking up the schemes.

The operation had several federal agency supporters. These include Federal Bureau of Investigation, the United States Secret Service, and the United States Department of the Treasury. Together, these agencies traced transactions on the blockchain and seized illicit digital assets.

Reports estimate that similar scams cost Americans nearly $10 billion every year. Therefore, officials refer to pig butchering as one of the fastest-growing financial crimes in the digital asset sector.

Recent Crackdowns Highlight Growing Crypto Crime Investigations

The recent seizures are the result of several major enforcement actions in 2025 and 2026. Authorities have stepped up their efforts to investigate organized crime rings involved in crypto laundering.

In October 2025, the United States confiscated about 127,000 BTC associated with Chen Zhi. The cryptocurrency belonged to the head of the Prince Holding group. The seizure amounted to about $15 billion and became the largest crypto seizure in the history of the US.

Additionally, courts jailed a Chinese national in January 2026. The man received a 46-month sentence for laundering $36.9 million from scam centers running out of Cambodia.

Meanwhile, stablecoin companies had also worked with investigators. A case in point, Tether verified freezing $4.2 billion in tokens associated with illegal activity in the past three years.

According to the latest reports, approximately $61 million in frozen tokens are related to cases of the butchering of pigs. Authorities asked for these freezes in ongoing investigations coordinated by the Department of Justice.

Overall, the most recent seizures point to broad government efforts to combat global crypto crime. Officials continue to bolster international collaboration and monitoring tools for blockchain. Therefore, enforcement agencies want to minimize digital asset fraud on a large scale worldwide.

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