US Seizes $10M from Pig-Butchering Crypto Scam Network

The US Scam Center Strike Force freezes $10M in digital assets, targeting transnational pig-butchering networks that cause $10B in annual losses.

This represents one of the most significant strikes to date against so-called “pig-butchering” schemes—fraudulent operations where victims are gradually lured into fake investment platforms.

The operation was carried out by the newly formed “Scam Center Strike Force,” established to coordinate asset tracing, fund recovery for victims, and international cooperation.

According to official estimates, Americans lose nearly $10 billion annually to organized online investment fraud, much of which utilizes cryptocurrencies to transfer funds across various jurisdictions.

Increased Pressure on Transnational Networks

Prosecutors claim the frozen assets were traced through a network of digital wallets and intermediary accounts used to launder funds from fraudulent investment platforms.

These schemes typically involve building trust with victims through social media or dating apps, after which they are directed to fictitious crypto platforms that display manipulated profits.

Authorities describe the action as part of a broader strategy to dismantle transnational fraud syndicates that exploit the speed of blockchain transactions and regulatory differences between countries.

Investigators are increasingly utilizing blockchain analytics and collaboration with crypto exchanges to identify and block illicit funds.

Limited Market Reaction

At the time of writing, Bitcoin is trading at approximately $85,509 in late Thursday trading, reflecting a decline of about 1% for the session. The broader digital asset market also saw moderate decreases.

Authorities have not specified how much of the frozen funds can be recovered for the victims, but they noted that forfeiture proceedings are underway. The Department of Justice signaled that additional actions are expected as part of ongoing investigations.