US Launches Strike Force to Combat Southeast Asian Cyber Scams
The United States has established a “Strike Force” to tackle cryptocurrency-related fraud and scams operating out of Southeast Asia, targeting scam centers in countries including Burma, Cambodia, and Laos. These organized networks have defrauded Americans of billions of dollars over the last five years. The Strike Force will employ investigations, criminal prosecutions, sanctions, and seizures to disrupt these operations while seeking restitution for victims.
Key Objectives and Operations
The operation involves multiple federal agencies, including the Department of Justice, the Federal Bureau of Investigation, the US Secret Service, and interagency partners. The Strike Force has acted against key targets in Myanmar, seizing Tai Chang websites and seeking warrants to confiscate satellite terminals linking other scam centers. Teams investigating Bali-based scam networks have helped Indonesian authorities prosecute 38 individuals.
The Crypto Seizure team announced the forfeiture of over $401.6 million in cryptocurrency and filed proceedings for another $80 million in stolen funds. These operations are intended to recover assets and prevent scammers from leveraging US infrastructure to target citizens. Strike Force members are embedded with local law enforcement, including the Royal Thai Police, to combat scam centers like KK Park and others.
Implications and Consequences
Chinese transnational criminal organizations have been implicated in coordinating these scams, with some coordinated ethnic groups like the Democratic Karen Benevolent Army (DKBA) associated with these crimes. The Treasury Department has sanctioned the DKBA and associated entities as specially-designated nationals, blocking assets and restricting business dealings with them. The DKBA is accused of securing scam compounds and exploiting trafficked workers, with revenue supporting organized crime and armed groups involved in Myanmar’s civil conflict.
“DKBA soldiers have been filmed beating handcuffed scam workers. Rescued victims have claimed that they were subjected to electric shocks, being hung by their arms inside dark rooms, and other brutal treatment,” the Treasury Department said. The schemes have caused widespread financial losses, with some Americans losing entire life savings.
Expert Insights and Recommendations
“Since 2019, the U.S. Secret Service has seen a major uptick in cryptocurrency investment scams,” said Secret Service Assistant Director Kyo Dolan. “In fiscal year 2025 alone, the U.S. Secret Service has responded to approximately 3,000 victims who contacted us regarding cryptocurrency investment schemes.” The Strike Force not only demonstrates the US commitment to dismantling these networks, but President Trump also wants the US to be the hub of global cryptocurrency.
“Scam centers are creating a generational wealth transfer from Main Street America into the pockets of Chinese organized crime,” said U.S. Attorney Pirro. “President Trump wants the United States to be the global center of the world’s cryptocurrency industry. So it is absolutely crucial that Americans understand the safe use of this commodity.”
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