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

The U.S. Department of Justice (DOJ) has launched the Scam Center Strike Force, an interagency initiative aimed at dismantling international cryptocurrency scams linked to Chinese crime syndicates. The effort unites the DOJ, FBI, Secret Service, and U.S. Treasury to combat "pig butchering" schemes, which defraud victims by building trust through fake relationships before siphoning their savings. These scams, which cost Americans an estimated $135 billion in 2024 alone, have become a focal point for federal authorities seeking to disrupt transnational fraud networks, as noted in a Blockonomi report.

The Strike Force's strategy includes identifying and prosecuting scam leaders, tracing stolen funds, and seizing infrastructure used to facilitate fraudulent crypto investments. As part of the announcement, U.S. Attorney for the District of Columbia Jeanine Pirro revealed that the DOJ has already seized $480 million in stolen cryptocurrency, including $80 million recently earmarked for return to victims, according to a Decrypt report. The initiative also builds on a recent $14 billion Bitcoin seizure from a Cambodia-based network tied to China, which marked the DOJ's largest forfeiture action in history, as detailed in a Coinotag report.

The Treasury Department has also escalated its efforts, imposing sanctions on a Burmese militant group linked to cyber scam centers. The group allegedly forced human trafficking victims to work in scam operations, according to officials. This action underscores a broader international strategy to dismantle illicit networks at multiple levels, as previously reported by Blockonomi. Experts in crypto security have praised the Strike Force as a pivotal shift toward a coordinated federal response, moving away from fragmented, reactive measures to a unified offensive, as noted in the Decrypt report.

The global reach of these scams is evident in parallel efforts across Asia. Thailand extradited She Zhijiang, a Chinese-born casino tycoon, for his alleged role in transnational fraud operations spanning Southeast Asia. Meanwhile, the UK secured a record seizure of 60,000 bitcoins-worth £4.8 billion-linked to a Chinese investment scam that defrauded 128,000 victims of £600 million, as reported in a Coinotag report. These cases highlight the scale of the challenge and the growing role of digital assets in financial crimes.

Tensions have also emerged between the U.S. and China over crypto enforcement. Beijing accused Washington of orchestrating a 2020 hack that stole 127,272 bitcoins from a mining pool, later seized by the DOJ in an operation tied to Cambodia's Prince Group, as described in a Yahoo Finance report. U.S. prosecutors allege that the group's chairman, Chen Zhi, operated forced-labor scam compounds, while China frames the seizure as evidence of U.S. cyber aggression, as the Yahoo report explains.

The Strike Force's success will depend on sustained interagency collaboration and international partnerships. Ari Redbord of TRM Labs emphasized that "no single agency can tackle this alone," calling the initiative a "clear statement" of U.S. resolve to combat global crypto fraud, as the Decrypt report noted. As the sector evolves, regulators face the dual challenge of fostering innovation while safeguarding users from exploitation.