U.S. Launches New Strike Force to Combat Cryptocurrency Fraud
On November 12, 2025, the U.S. Attorney’s Office for the District of Columbia announced the formation of the Scam Center Strike Force, a new federal initiative aimed at dismantling cryptocurrency fraud networks that target American citizens. The announcement marks a significant escalation in the government’s efforts to combat digital-asset scams, particularly those orchestrated by transnational criminal organizations based in Southeast Asia.
Focus on Southeast Asian Crypto Scam Centers
The Scam Center Strike Force will specifically target extensive cryptocurrency investment fraud operations run from Southeast Asia. These scams have defrauded U.S. citizens of billions of dollars, often through sophisticated confidence schemes and fraudulent investment platforms. The initiative brings together agencies from the Department of Justice (DOJ), Treasury, Homeland Security, the FBI, and the United States Secret Service, signaling a coordinated, multi-agency approach to disrupting these criminal networks.
At a press conference, U.S. Attorney Jeanine Pirro emphasized the urgency of the new task force, stating that victims have lost their entire life savings to these scams. The strike force will leverage jurisdictional reach and international cooperation to identify, investigate, and prosecute those responsible for these crimes.
Recent Enforcement Actions and Seizures
The launch of the Scam Center Strike Force comes on the heels of several high-profile enforcement actions. On November 14, 2025, the DOJ announced five guilty pleas and over $15 million in civil forfeiture actions related to cryptocurrency fraud. In another recent case, the Commodity Futures Trading Commission (CFTC) obtained a multimillion-dollar judgment against Systematic Alpha Management LLC and its principal, Peter Kambolin, for orchestrating a cryptocurrency-related fraudulent scheme. Kambolin was ordered to pay $1.63 million in criminal forfeiture and $1.2 million in restitution.
These actions underscore the government’s commitment to holding fraudsters accountable and returning funds to victims. The CFTC consent order specified that money paid toward forfeiture and restitution in the criminal case will be credited dollar-for-dollar toward the civil amounts, ensuring that victims receive maximum compensation.
Implications for Cryptocurrency Businesses
The creation of the Scam Center Strike Force represents a major expansion of cryptocurrency fraud enforcement. Companies involved in cryptocurrency transactions should expect sustained federal attention and should reassess their compliance, reporting, and fraud-mitigation protocols. The Financial Crimes Enforcement Network (FinCEN) has also taken action against bitcoin mixers, including a $60 million civil penalty against Larry Dean Harmon, the founder and operator of Helix and Coin Ninja. These actions demonstrate that financial institutions and cryptocurrency businesses must maintain robust anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance programs.
Looking Ahead
The Scam Center Strike Force is expected to intensify investigations and prosecutions of cryptocurrency fraud, with a focus on international cooperation and asset recovery. The announcement that law enforcement has already seized over $400 million in cryptocurrency is a powerful sign that these criminals can—and will—be caught. As the government continues to prioritize the protection of American citizens and the integrity of the financial system, companies and individuals involved in the cryptocurrency space must remain vigilant and compliant with evolving regulatory requirements.
The launch of the Scam Center Strike Force is a major win for consumers and a clear message to fraudsters that the U.S. government is committed to combating digital-asset fraud on a global scale.