The Department of Justice (DOJ) has launched a new initiative aimed at combating a rising wave of international cryptocurrency scams, specifically targeting operations known as “pig butchering” schemes. These scams, primarily linked to Chinese organized crime networks, have reportedly defrauded U.S. citizens of an astounding $135 billion in 2024 alone.
U.S. Attorney for the District of Columbia, Jeanine Pirro, detailed the initiative during a press conference where she emphasized the urgency of addressing the issue. She revealed that her office has already seized $480 million in stolen cryptocurrency, asserting that the new Scam Center Strike Force will enhance efforts to dismantle the structures of these criminal organizations. This task force will collaborate with various government agencies, including the FBI, Secret Service, and U.S. Treasury, to trace stolen funds and bring perpetrators to justice.
Pirro described the initiative as a proactive strategy to combat a “growing epidemic” of crypto investment fraud. “We’re here today to target a growing epidemic,” she said, referring to scams that manipulate trade and investment opportunities in cryptocurrency. The term “pig butchering” refers to the method in which scammers create deceptive relationships with victims, gradually gaining their trust before ultimately swindling them out of their assets.
As part of the announcement, a Treasury Department representative revealed additional sanctions against a militant group operating a cyber scam compound in Burma, which has been accused of human trafficking and exploitation of workers forced to participate in these scams. The announcement also included sanctions against two companies and a Thai national connected to the group.
Experts in cryptocurrency security have long criticized the U.S. government for its piecemeal approach to tackling such scams. They argue a coordinated, inter-agency response is essential to effectively combat this form of financial fraud. Leadership at blockchain intelligence firm TRM praised the new Strike Force, calling it a significant shift toward a united front against global crypto crime. Ari Redbord, TRM’s Head of Global Policy, highlighted the importance of collaboration among various governmental departments, asserting that the initiative signifies a committed effort to fight back against these operations with “the full power of the state.”
Last month, the DOJ made headlines with the historic seizure of $14 billion in Bitcoin tied to a Cambodian-based crypto scam network connected to China. This operation marked the largest forfeiture action in the history of the DOJ and demonstrated how a coordinated approach by law enforcement can yield substantial results in dismantling complex crime networks.
Redbord noted that the success of past operations illustrates the potential effectiveness of the new Scam Center Strike Force. He argued that combining the resources of the DOJ, FBI, Treasury, and other entities allows for a robust strategy; one that can proactively disrupt, rather than simply react to, ongoing fraud.
With the launch of this new initiative, the DOJ signals its intent to confront the growing threat of international cryptocurrency scams head-on, providing reassurance to American consumers as they navigate the rapidly evolving landscape of digital finance.
