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

United States federal prosecutors announced an enforcement action seizing more than $580 million in crypto. The assets were linked to Chinese criminal groups running complex international fraud and money laundering schemes online, showing the growing scale of cross-border crypto crime.

The seizure reflects a broader trend of illicit digital activity. Blockchain analytics firm Chainalysis reported that Chinese-language laundering networks moved about $16.1 billion in 2025. This highlights both the rapid growth of illegal crypto flows and the scale of organized criminal operations.

The $580 Million Seizure

The Scam Center Strike Force, officially launched in November 2025, carried out the $580 million crypto seizure. The task force operates under the U.S. Attorney’s Office for the District of Columbia with support from federal partners nationwide.

Its operations specifically target pig-butchering scams, where fraudsters exploit victims through social media and dating platforms. Scammers slowly build trust before directing targets to fake crypto sites that show false profits and balances. These schemes are often run from compounds across Southeast Asia, including Myanmar, Cambodia, and Laos. Investigators say Chinese organized crime groups operate the networks and launder funds globally.

Agencies involved include the Department of Justice Criminal Division, the Federal Bureau of Investigation, the U.S. Secret Service, and the IRS Criminal Investigation. Officials said coordination across these agencies allowed faster tracing, freezing, and recovery of funds spread across multiple blockchains.

Forced Labor and Billions in Losses

Authorities highlighted human trafficking concerns tied to these scam operations, which often use forced labor inside guarded facilities. Victims are coerced into scamming under threats while criminal groups extract billions from targets worldwide each year.

Officials estimate that such fraud schemes drain nearly $10 billion annually from victims nationwide through digital channels. The seized assets are now subject to civil forfeiture proceedings aimed at compensating victims wherever possible under federal law.

US authorities described the case as one of the largest crypto recoveries linked to Southeast Asian fraud rings in recent memory. They stated that the action signals a stronger focus on cross-border digital crime and urged victims to contact law enforcement with any information.

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