US Justice Department Seizes Over $578 Million in Crypto From Chinese Scams
The US Department of Justice has reported a significant breakthrough in its efforts to combat cryptocurrency-related fraud and scams. Over a three-month period, the District of Columbia Scam Center Strike Force, established in November by US Attorney Jeanine Pirro, carried out seizures and freezes totaling over $578 million in digital assets linked to criminal groups in Southeast Asia.
According to the Justice Department, the seized and frozen cryptocurrencies were stolen by Chinese transnational criminal organizations that targeted US citizens through websites and social media platforms. The actions taken by the Scam Center Strike Force aim to disrupt and dismantle these criminal networks, with US Attorney Jeanine Pirro stating, “Seizing cryptocurrencies is an important part of the Scam Center Strike Force’s work. As part of the legal process, my office will seek to forfeit these funds and return them to the victims to the fullest extent possible.”
Source: Jeanine Pirro
Crypto Fraud on the Rise
The seizures come as crypto fraud has increased sharply in 2025, with blockchain analytics platform Chainalysis reporting a 1,400% increase in cryptocurrency-related identity theft incidents compared to the previous year. The average amount stolen through identity theft has also increased by 600% over the same period, with many scams involving pig slaughter and investment schemes.
In some cases, those involved in these scams have faced severe penalties. Earlier this month, a judge sentenced a person to 20 years in prison for orchestrating a scam in which over $73 million was stolen from victims, many of whom lived in the United States.
Efforts to Combat Crypto Crime
The US government has taken steps to establish a strategic Bitcoin reserve and digital asset inventory, with President Donald Trump’s executive order in March 2025 paving the way for the creation of this reserve. However, the size of the stash remains unclear, with the White House yet to comment publicly on the matter. According to BitcoinTreasuries.NET, US authorities could hold up to 328,372 Bitcoin (BTC) through various criminal seizures.
For more information on this story, visit Cointelegraph.
