New Strike Force Set to Target Overseas 'Pig Butchering' as U.S. Hits Burma Operation
The U.S. government has launched the Scam Center Strike Force to combat global crypto scams, particularly 'pig butchering' schemes often run by organized crime groups in Southeast Asia, including Burma, Cambodia, Laos, and the Philippines. These operations, involving coerced workers through human trafficking, defraud Americans via fake investment schemes and romantic cons, stealing billions of dollars. The initiative, led by the U.S. Attorney for the District of Columbia, involves multiple federal agencies, such as the Department of Justice (DOJ) and the Treasury Department. Recent efforts include sanctions against Burmese entities linked to Chinese organized crime and the seizure of over 127,000 Bitcoin in Cambodia. The strike force aims to dismantle transnational criminal enterprises and protect American victims.
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U.S. Government Takes Action Against Overseas Crypto Scams
The U.S. government agencies are escalating their response to international scams targeting people through cryptocurrency fraud. On Wednesday, the Department of the Treasury announced the formation of a Scam Center Strike Force aimed at combatting fake investment schemes. These scams often trick Americans into sending crypto to fraudulent entities. The latest effort focuses on a Burmese operation involved in deceptive investment schemes targeting U.S. citizens.
Details of the Scam Center Strike Force
The Scam Center Strike Force, which also involves the Department of Justice (DOJ), will focus on dismantling so-called "pig butchering" operations. These schemes are frequently linked to organized-crime groups in Southeast Asia, such as Burma, Cambodia, Laos, and the Philippines. The newest case led to the Treasury's Office of Foreign Assets Control (OFAC) sanctioning individuals and groups, including the Democratic Karen Benevolent Army and Chinese-backed scam centers.
Focus on Human Trafficking and Fraudulent Activities
These transnational criminal enterprises utilize human trafficking to force individuals into running factory-scale operations. The teams deceive victims into fraudulent investments or relationships to steal funds. John Hurley, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized: "The Administration will keep using every tool we have...to protect American families from exploitation."
Collaboration of U.S. Agencies in the Strike Force
The Strike Force incorporates efforts from multiple government agencies, including the DOJ, Treasury Department, State Department, and domestic law enforcement. Ari Redbord, global head of policy at TRM Labs, pointed out: "The scale is staggering... no single agency can tackle this alone." The initiative reflects previous strike forces, such as the health care strike force and trade fraud task force, created by the DOJ.
Recent Strikes Against Scam Operations
Last month, U.S. authorities targeted the Prince Group, accused of running scams in Cambodia. This resulted in the DOJ's largest crypto seizure ever, amounting to 127,271 Bitcoin (BTC). The operation showcased coordinated efforts between the DOJ and the Treasury Department, demonstrating the government's resolve in fighting these criminal enterprises.
Sanctions and Links to Civil War Funding
In Burma, the U.S. linked scam operations to sanctioned entities like Trans Asia International Holding Group Thailand Company Ltd., Troth Star Co. Ltd., and Thai national Chamu Sawang. The sanctions accused these groups of ties to Chinese organized crime and indicated that proceeds from these scams are being used to fund Burma's civil war.