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U.S. Scam Center Strike Force seizes $580m in crypto in just three months

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U.S. prosecutors have frozen and seized more than $580m in cryptocurrency in under three months in enforcement against large-scale crypto fraud networks.

Posted: February 27, 2026 Avatar

By: Adewale Olarinde Journalist Edited By: Jibin Mathew George U.S. Scam Center Strike Force seizes $580m in crypto in just three months

Adewale Olarinde Journalist Edited By: Jibin Mathew George Posted: February 27, 2026 Share this article

U.S. authorities have frozen and seized more than $580 million in cryptocurrency in under three months.

It marks one of the most aggressive enforcement actions yet against crypto-enabled fraud networks, according to the U.S. Attorney’s Office for the District of Columbia.

The Scam Center Strike Force carried out the seizures. It is a multi-agency initiative launched in late 2025 to target large-scale cryptocurrency investment fraud and confidence scams linked to Chinese transnational criminal organizations operating across Southeast Asia.

Prosecutors say the funds were stolen from U.S. victims through schemes commonly known as “pig-butchering,” where scammers build long-term trust before directing victims to fake crypto platforms.

A rapid escalation in crypto enforcement

Announcing the milestone, Jeanine Pirro, the U.S. Attorney for the District of Columbia, said the pace of seizures underscores how aggressively federal agencies are now moving to intercept illicit crypto flows before they are fully laundered or dispersed.

Officials estimate that crypto-related scams siphon nearly $10 billion a year from Americans. This is often via social media, messaging apps, and spoofed investment portals.

In many cases, victims are persuaded to transfer legitimate crypto assets, only to see them routed into wallets controlled by criminal networks.

The Strike Force brings together prosecutors and investigators from the Department of Justice’s Criminal Division, the FBI, the U.S. Secret Service, and the IRS Criminal Investigation unit, among others.

Also, authorities say their focus extends beyond wallet seizures. They identify organizers, infrastructure providers, and on-the-ground operators tied to scam compounds in Burma, Cambodia, and Laos.

What the U.S. government now holds

Arkham data show that the U.S. government has already accumulated a sizable on-chain crypto portfolio through enforcement actions. Data indicates that Bitcoin dominates U.S. government crypto holdings, accounting for over $21.5 billion.

Source: Arkham

While officials stress that seized assets remain subject to forfeiture proceedings, prosecutors say returning recovered funds to victims “to the maximum extent possible” is a core objective of the program.

A signal to crypto markets

The Strike Force’s early results suggest that large-scale crypto fraud is moving away from reactive policing toward sustained, centralized enforcement.

Final Summary

The $580 million seizure milestone highlights how quickly U.S. authorities are scaling crypto-focused enforcement.
As blockchain transparency improves and inter-agency coordination tightens, crypto is becoming less of a hiding place for scammers.

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Adewale Olarinde

Adewale Olarinde is a crypto journalist and data-driven storyteller with a Master’s degree in International Relations. He covers digital assets, markets, and policy with a focus on clarity and context. Outside of work, he’s a lifelong Manchester United supporter and a big music lover. More Articles