Pirro Launches Federal Task Force to Combat Cryptocurrency Scams Linked to Chinese Organized Crime
WASHINGTON — U.S. Attorney for the District of Columbia Jeanine Pirro announced the formation of a new federal task force dedicated to dismantling large-scale cryptocurrency scam operations run by Chinese organized crime groups. The initiative, dubbed the Scam Center Strike Force, marks a significant escalation in the U.S. government’s efforts to protect American citizens from increasingly sophisticated cyber fraud schemes originating in Southeast Asia.
The Scam Center Strike Force brings together the U.S. Attorney’s Office for the District of Columbia, the Department of Justice’s Criminal Division, the FBI, and the United States Secret Service. The task force will focus its efforts on the most egregious scam centers operating in Burma, Cambodia, and Laos, targeting both the criminal networks and their leaders.
During a press conference on Wednesday, Pirro emphasized the devastating impact these scams have had on American families. She shared harrowing stories, including one of an elderly woman who lost her entire $1 million life savings and another case where a man tragically took his own life after being victimized. “These are not just financial crimes—they are crimes that destroy lives,” Pirro said.
According to government estimates, Americans lost at least $10 billion to Southeast Asia-based scam operations in 2024 alone—a 66% increase from the previous year. The scams typically involve convincing victims to make “investments” on fraudulent websites that mimic legitimate financial platforms. Once funds are deposited, the scammers steal the money and disappear.
The Treasury Department’s Office of Foreign Assets Control (OFAC) is working closely with the strike force to disrupt these operations through sanctions, asset seizures, and criminal prosecution. The State Department is also coordinating with Treasury to impose financial penalties on entities and individuals supporting these scam centers.
In a major development, the U.S. government has already seized over $400 million in stolen cryptocurrency and is taking additional actions to forfeit another $80 million, which will be returned to victims. Authorities have also seized websites and satellite terminals used by the perpetrators to connect to the internet and victimize Americans.
As part of the crackdown, the U.S. has sanctioned the Democratic Karen Benevolent Army (DKBA) and four of its leaders for supporting cyber scam centers in Burma. These centers use fraudulent investment schemes to target Americans, often recruiting individuals with English language skills and setting daily quotas for the number of victims to be targeted.
The strike force will also work to secure U.S. infrastructure against exploitation by scammers and will provide public education and restitution to victims. Pirro noted that major tech companies, including Meta, Microsoft, and AARP, have reached out to collaborate with the government in this effort.
Experts warn that the true scale of losses may be much higher due to underreporting, with some estimates suggesting the actual figure could be as much as 15 times the reported $10 billion. The new task force aims to identify and charge the leaders of these criminal organizations, trace and recover stolen funds, and disable the infrastructure used by scammers.
“We are committed to holding these criminals accountable and ensuring that American victims receive justice and restitution,” Pirro said. “This is a fight for the safety and security of our citizens, and we will not stop until these scam centers are dismantled.”
The formation of the Scam Center Strike Force signals a new era in the U.S. government’s battle against transnational cybercrime and highlights the growing threat posed by cryptocurrency scams to American consumers.