DOJ Seizes $700M in Crypto From Southeast Asia Scam Network
U.S. authorities seized $700 million in crypto and charged two Chinese nationals tied to Southeast Asia scam centers.
The U.S. Department of Justice (DOJ) announced on April 23, 2026, a major enforcement action targeting cryptocurrency fraud networks operating from scam compounds across Southeast Asia, resulting in the restraint of more than $700 million in digital assets and criminal charges against two Chinese nationals.
According to federal authorities, the operation was carried out by the Scam Center Strike Force, a multi-agency initiative focused on dismantling cyber-enabled fraud organizations responsible for stealing billions of dollars from victims worldwide. The crackdown included the seizure of 503 fraudulent investment websites and the takedown of a Telegram channel allegedly used to recruit workers into scam compounds.
The DOJ identified Huang Xingshan and Jiang Wen Jie, both Chinese nationals, as key figures behind the Shunda scam compound in Myanmar, also known as Burma. Prosecutors allege the pair managed operations that used trafficked and coerced workers to run fraudulent cryptocurrency investment schemes targeting victims, including U.S. residents.
Authorities said the criminal enterprise relied on fake investment platforms and online confidence scams, commonly referred to as “pig butchering” schemes, in which victims are persuaded to invest increasing amounts of money before losing access to their funds.
As part of the investigation, law enforcement agencies restrained approximately $701.9 million worth of cryptocurrency believed to be linked to money laundering activities associated with the fraud operation. Officials stated that efforts are underway to identify victims and potentially return recovered funds.
The enforcement action forms part of a broader U.S. campaign against cybercrime groups operating throughout Cambodia, Myanmar, and other parts of Southeast Asia. The crackdown has also involved sanctions against individuals and entities accused of facilitating scam compounds and human trafficking networks connected to online fraud operations.
Federal officials said the investigation remains ongoing as authorities continue efforts to disrupt the financial infrastructure supporting transnational scam centers and recover assets linked to cryptocurrency investment fraud.
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