US Strike Force to Combat China-Linked Crypto Scams
The US Department of Justice (DOJ), FBI and Secret Service have launched an interagency “Scam Center Strike Force” targeting China-linked crypto scams operating from Southeast Asia. Announced by US Attorney Jeanine Ferris Pirro, the task force combines resources from the DOJ Criminal Division, the US Attorney’s Office, FBI and Secret Service, coordinating with the State Department, OFAC and Commerce Department. These organizations aim to dismantle pig-butchering operations that defraud Americans of an estimated $9 billion annually through fake crypto tokens and fraudulent exchanges.
Authorities have seized over $401 million in cryptocurrency and frozen assets tied to the Democratic Karen Benevolent Army. High-profile operations include closing a scam compound in Burma and embedding FBI agents with Thai police to shut down KK Park. The Strike Force plans further global collaboration to prosecute foreign defendants, seize illicit proceeds and return stolen funds to victims. Crypto scams enforcement is expected to boost investor confidence and market integrity.
Bullish
Cracking down on crypto scams strengthens market integrity and investor trust. By disrupting major pig-butchering operations and returning stolen funds, regulators demonstrate effective enforcement. Similar past crackdowns on fraud have reduced uncertainty and supported price stability in the short term. Over the long term, clearer enforcement frameworks tend to attract institutional capital and promote healthy growth in the cryptocurrency market.