U.S. Launches New Strike Force to Combat $10 Billion Southeast Asian Scam Industry; OFAC Targets Burma-Based Cyber Scam Network

TL;DR

• The U.S. Department of Justice, along with main federal legislation enforcement and interagency companions, announced the creation of the primary Scam Center Strike Force to safe America in opposition to Southeast Asian cryptocurrency-related fraud and scams.
• OFAC additionally designated the Democratic Karen Benevolent Army (DKBA) and related entities for working cyber rip-off facilities concentrating on Americans.
• According to the OFAC press release, Americans misplaced not less than $10 billion to Southeast Asia-based rip-off operations in 2024, a 66% enhance year-over-year.
• The motion targets corporations like Trans Asia and Troth Star that develop rip-off compounds utilizing compelled labor to conduct cryptocurrency investment fraud.
• This designation follows October’s historic Prince Group action and demonstrates continued U.S. concentrate on disrupting the infrastructure enabling pig butchering scams.
• The Strike Force has already seized over $401 million in cryptocurrency and is pursuing an extra $80 million in forfeiture proceedings.

 

On November 12, 2025, the U.S. Attorney for the District of Columbia, along with the Federal Bureau of Investigation (FBI) and U.S. Secret Service, introduced the institution of a Scam Center Strike Force — a devoted interagency activity drive to examine, disrupt, and prosecute probably the most egregious Southeast Asian rip-off facilities and their leaders. Concurrently, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the Democratic Karen Benevolent Army (DKBA), a Burma-based armed group, together with 4 senior leaders and firms linked to Chinese organized crime for supporting cyber rip-off facilities that focus on Americans.

$10 billion misplaced to Southeast Asian scams

The scale of cryptocurrency-enabled fraud originating from Southeast Asia has reached disaster ranges. According to U.S. authorities estimates, Americans misplaced at least $10 billion to Southeast Asia-based rip-off operations in 2024, representing a 66% enhance over the prior yr. These losses are pushed primarily by “pig butchering” scams, whereby illicit actors construct relationships with victims over weeks or months earlier than convincing them to spend money on fraudulent crypto platforms.

Through proactive sufferer notification applications, the FBI has contacted over 6,300 potential victims previously 15-16 months, stopping an estimated $275 million in further losses. Additionally, The U.S. Secret Service reported responding to roughly 3,000 victims who contacted the company relating to cryptocurrency funding schemes in fiscal yr 2025 alone.

The DKBA and rip-off compound infrastructure

The DKBA, an armed group that helps Burma’s ruling navy regime, controls territory the place main rip-off operations are situated, together with the Tai Chang compound close to Myawaddy in Karen State. The compound was based by Sai Kyaw Hla, a DKBA brigadier common, in partnership with Trans Asia International Holding Group Thailand Company Limited — Thailand-based firm that serves as a entrance for China-based transnational legal organizations.

Today’s motion follows October’s unprecedented designation of the Prince Group Transnational Criminal Organization (TCO) and 146 related targets. Like the DKBA operations, Prince Group managed rip-off compounds throughout Cambodia the place trafficked staff had been compelled to conduct pig butchering scams beneath brutal circumstances. The October motion included a historic $15 billion civil forfeiture case involving roughly 127,000 bitcoin managed by Prince Group chief Chen Zhi.

While at the moment’s designation didn’t embrace particular crypto addresses, these operations rely closely on crypto. Pig butchering scams direct victims to deposit funds into fraudulent funding platforms that seem reputable however are managed by scammers. Once victims make deposits — usually in bitcoin, ethereum, or stablecoins — the scammers both instantly steal the funds or string victims together with pretend “returns” to encourage bigger deposits earlier than disappearing.

Understanding the pig butchering menace panorama

Chainalysis CEO Jonathan Levin not too long ago mentioned the rising menace of pig butchering scams with former FBI Deputy Assistant Director James Barnacle. In the dialog, they explored how these refined operations have developed, the position of compelled labor in rip-off compounds, and the significance of public-private partnerships in combating these crimes.

Barnacle highlighted the FBI’s Level Up initiative, which has efficiently intervened with hundreds of potential victims earlier than they misplaced further funds. The dialogue additionally emphasised how cryptocurrency’s transparency permits legislation enforcement to hint funds and determine rip-off networks — a functionality that conventional cost programs lack. This traceability has been essential in serving to authorities perceive the total provide chain of pig butchering operations, from preliminary sufferer contact via cash laundering.

The position of Huione and AI know-how

The interconnected nature of Southeast Asia’s rip-off ecosystem means these operations usually depend on service suppliers like Huione, which FinCEN focused in October 2025. Huione has processed almost $100 billion in cryptocurrency transactions since 2021 and serves as a one-stop-shop for scammers’ wants — from AI-powered instruments that assist create pretend personas to cash laundering companies that obfuscate illicit proceeds.

Chainalysis analysis has recognized that rip-off know-how distributors collectively acquired not less than $375.9 million in cryptocurrency in 2024, with AI service distributors seeing a staggering 1,900% compound annual development fee from 2021 via 2024. These AI instruments allow scammers to create life like pretend identities, generate convincing content material, and scale their operations to goal extra victims concurrently.

Supporting legislation enforcement investigations

Chainalysis has performed a crucial position in supporting the federal government companies that make up the Scam Center Strike Force, in addition to legislation enforcement companies worldwide of their efforts to fight pig butchering scams. Through our blockchain intelligence platform, investigators can hint cryptocurrency flows from sufferer deposits via complicated laundering networks to determine rip-off operators, seize stolen funds, and construct circumstances for prosecution.

Our know-how has enabled authorities to map the infrastructure of rip-off operations, connecting fraudulent platforms to their operators, know-how suppliers, cash launderers, and repair suppliers like Huione. By figuring out patterns in how scammers transfer funds and linking cryptocurrency addresses to real-world entities, Chainalysis helps investigators dismantle these networks and get better property for victims. The Strike Force’s success in seizing over $401 million in cryptocurrency demonstrates the effectiveness of this blockchain intelligence in taking motion in opposition to transnational rip-off operations.

Combating scams with superior know-how

As scammers more and more leverage AI know-how to scale their operations, the struggle in opposition to these crimes requires equally refined instruments. Chainalysis Alterya combines blockchain intelligence with AI-powered fraud detection to assist determine and forestall scams in real-time.

Financial establishments and cryptocurrency companies can determine suspicious patterns, flag potential rip-off transactions earlier than funds are misplaced, and defend their clients from pig butchering and different cryptocurrency fraud schemes.

Impact on cryptocurrency compliance

Businesses ought to stay vigilant for transactions involving the newly designated entities and people. Organizations ought to display screen all counterparties in opposition to up to date OFAC sanctions lists, monitor for behavioral patterns in step with pig butchering scams, in addition to the know-how, and laundering behind it, and implement enhanced due diligence for patrons making giant deposits to unfamiliar platforms.

The institution of the Scam Center Strike Force indicators that U.S. authorities are taking a extra coordinated, aggressive strategy to disrupting these operations. With over $401 million already seized and lively operations concentrating on each rip-off compound management and the U.S. infrastructure they exploit, the Strike Force represents a multi-pronged technique to defend Americans from these schemes.

If you’d like to be taught extra about how Chainalysis merchandise may also help defend your group and clients from cryptocurrency scams, click on here to request a demo.

 

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