U.S. authorities have restrained more than $1 billion in cryptocurrency tied to fraud and scams, according to an announcement by U.S. Attorney Jeanine Ferris Pirro for the District of Columbia on October 27. The Justice Department's Scam Center Strike Force has expanded its global operations as criminal networks shift locations across multiple continents.
The Strike Force, launched in November 2025, reported more than $580 million in crypto freezes, seizures, and forfeitures within its first three months of operation. Authorities also seized 700 fraudulent cryptocurrency investment websites and Telegram channels supporting the schemes.
Madagascar Dating Scam Targets Hundreds of Americans
Six defendants have been charged in connection with an alleged scheme involving fake non-fungible token investments based in Madagascar. According to prosecutors, participants posed as women seeking romantic relationships and directed Americans to fraudulent investment websites, convincing them to connect and fund cryptocurrency wallets before the funds were secretly drained.
The FBI identified approximately 74 wallets associated with about 800 U.S. victims. Stolen funds allegedly reached cryptocurrency accounts linked to China-based actors. The defendants allegedly opened operations in Madagascar in early 2025, with connections to Malaysia and China.
Chui Kok Wa, identified as the alleged scheme's leader, was charged with conspiracy to commit wire fraud. Materials seized from his phones included employment contracts with overnight work schedules aligned with U.S. hours and compensation tied to stolen funds.
International Cooperation Against Scam Networks
The United States and Britain signed an agreement on September 3 providing for parallel investigations and information sharing against scam networks. The arrangement involves the Crown Prosecution Service and the National Crime Agency, Britain's lead agency against serious and organized crime.
In a separate case, Zheng Zhao was extradited from the Netherlands and brought before a California court on October 23. That case involved 174 identified U.S. victims of an alleged Cambodian investment scheme.
An FBI deployment to Madagascar in August supported local police operations targeting 13 compounds, where more than 3,200 electronic devices were seized. U.S. officials reported obstacles to suspect interviews and repatriation efforts.
Broader Enforcement Actions
A September operation against Xinbi Guarantee, a marketplace allegedly serving scam operators, contributed to the cumulative crypto restraints reaching approximately $938 million. Restraints restrict the use or transfer of assets pending legal proceedings and potential victim compensation.
Private-sector efforts included Meta's reported removal of 17.3 million scam accounts and OpenAI's cooperation commitment with authorities. The Justice Department described the Strike Force's scope as targeting cryptocurrency investment fraud, cyber-enabled fraud, human trafficking, and money laundering operations.
