U.S. Agencies Hunt "Pig Butchering" Scams in Global Crypto Crackdown

The U.S. Department of Justice (DOJ) has established the Scam Center Strike Force, a collaborative task force designed to dismantle global cryptocurrency fraud operations associated with Chinese criminal organizations. This initiative brings together the DOJ, FBI, Secret Service, and U.S. Treasury to target "pig butchering" scams, which deceive individuals by fostering fake relationships to ultimately steal their assets. In 2024 alone, these schemes have reportedly cost Americans around $135 billion, making them a top priority for federal agencies determined to break up international fraud rings, according to a

.

The Strike Force’s approach involves tracking down and charging the masterminds behind these scams, following the trail of stolen assets, and confiscating the tools and platforms used for fraudulent crypto investments. During the announcement, Jeanine Pirro, U.S. Attorney for the District of Columbia, stated that the DOJ has already recovered $480 million in stolen digital currency, with $80 million recently set aside for restitution to victims, as reported by

. The operation also follows a recent $14 billion seizure from a Cambodia-based group linked to China, which stands as the DOJ’s largest asset forfeiture to date, as outlined in a .

The Treasury Department has intensified its crackdown as well, issuing sanctions against a Burmese armed group accused of running cyber scam centers. Officials claim the group forced victims of human trafficking into scam labor. This move is part of a broader international campaign to dismantle criminal networks at various levels, as previously covered by

. Crypto security specialists have hailed the Strike Force as a significant step toward a unified federal strategy, shifting from isolated, reactive efforts to a more coordinated offensive, as highlighted in the .

The international scope of these scams is reflected in similar actions across Asia. Thailand extradited She Zhijiang, a casino magnate originally from China, for his suspected involvement in cross-border fraud schemes throughout Southeast Asia. In the UK, authorities made a record seizure of 60,000 bitcoins—worth £4.8 billion—tied to a Chinese investment scam that swindled £600 million from 128,000 victims, as detailed in a

. These incidents underscore the vast scale of the problem and the increasing use of digital currencies in financial crimes.

Disputes have also arisen between the U.S. and China regarding cryptocurrency enforcement. China has accused the U.S. of orchestrating a 2020 cyberattack that resulted in the theft of 127,272

from a mining operation, which the DOJ later seized in a case connected to Cambodia’s Prince Group, as described in a . U.S. officials allege that Chen Zhi, chairman of the group, ran forced-labor scam centers, while Chinese authorities portray the seizure as an act of American cyber aggression, according to the Yahoo report.

The effectiveness of the Strike Force will rely on ongoing cooperation among agencies and strong international alliances. Ari Redbord from TRM Labs stressed that "no single agency can tackle this alone," describing the initiative as a "clear statement" of America’s commitment to fighting global crypto scams, as mentioned in the

. As the crypto landscape changes, regulators must balance encouraging innovation with protecting users from abuse.