The US Department of Justice (DOJ) announced a major enforcement action on Thursday, confirming that more than $701 million in cryptocurrency tied to investment scams targeting Americans has been frozen. The operation was carried out by the US Scam Center Strike Force in coordination with law enforcement agencies and crypto exchanges through voluntary restraint and legal proceedings.
According to the US Attorney’s Office for the District of Columbia, the action focuses on dismantling scam infrastructure and preventing further victim losses while enabling potential fund recovery. Officials stated that seized assets will be processed for forfeiture and returned to victims where possible.
Telegram Recruitment Network and Fake Investment Sites Shut Down
Alongside the crypto freeze, authorities seized a Telegram channel used to recruit individuals into scam centers operating in Cambodia. The channel was reportedly used to lure job seekers into fraudulent crypto-related schemes.
Law enforcement also took down 503 fake investment websites that tricked users into depositing cryptocurrency. These domains were replaced with seizure notices indicating law enforcement control.
Arrest Warrants and International Scam Operations
Criminal charges were unsealed against Chinese nationals Huang Xingshan and Jiang Wen Jie, accused of running a crypto fraud network based in Burma’s Shunda compound. The site was later seized by the Karen National Liberation Army in late 2025.
The US State Department has also issued a $10 million reward for intelligence related to Tai Chang scam centers operating in Burma, highlighting the scale of cross-border fraud activity.
Global Crackdown and Rising Cybercrime Losses
Other countries are increasing enforcement as well. Singapore authorities recently blocked over $2.86 million in potential losses through coordinated operations with firms like Coinbase, Gemini, and blockchain intelligence providers.
The FBI reported more than one million cybercrime complaints in 2025, with total losses estimated at $21 billion, underscoring the growing global impact of crypto-related scams and fraud networks.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.