U.S. federal agencies have launched a specialized task force to battle the surge of cryptocurrency scams linked to transnational criminal organizations, particularly those with roots in China. The newly formed “Scam Center Strike Force” is a cooperative initiative involving the Department of Justice (DOJ), Federal Bureau of Investigation (FBI), U.S. Secret Service, and other federal bodies, aiming to dismantle complex fraud operations exploiting digital currencies.
Announced by U.S. Attorney for the District of Columbia, Jeanine Pirro, the Strike Force is tasked with countering so-called “pig butchering” schemes — a form of long-con scam where perpetrators build trust with victims over time, often via social media or dating platforms, before luring them into fraudulent investments in fake cryptocurrency platforms. These scams have seen rapid growth in recent years and have collectively siphoned off billions of dollars from victims around the globe.
Pirro emphasized that a significant portion of these operations can be traced back to criminal syndicates operating out of China. These groups are believed to run sophisticated scam centers, often involving human trafficking and forced labor, where workers are coerced into scamming individuals through scripted dialogues and digital manipulation.
The Scam Center Strike Force will coordinate efforts across several federal agencies, including the Department of the Treasury and the Department of Homeland Security, to track illicit funds, identify key players, and ultimately prosecute those involved. In addition to targeting the scammers themselves, the task force will also focus on dismantling the infrastructure that supports these schemes — from fake websites and crypto exchanges to digital wallets used to launder stolen funds.
Investigations have revealed that these scams are not isolated incidents but rather components of expansive, well-orchestrated criminal enterprises. Victims often report being contacted by strangers who initiate friendly or romantic conversations, gradually gaining trust before introducing investment opportunities that appear legitimate. Once the victim transfers money, they are often encouraged to invest more. Eventually, all contact ceases and the platforms vanish, leaving victims with significant financial losses.
Officials say these schemes are increasingly difficult to detect because the perpetrators use a mix of social engineering, deepfake technologies, and blockchain obfuscation techniques to hide their tracks. Moreover, many victims are reluctant to report the crimes, either due to embarrassment or fear of never recovering their funds.
The Strike Force also plans to enhance public awareness about these scams. Educational campaigns will be launched to help individuals recognize red flags such as unsolicited investment advice, overly polished websites promising high returns, and romantic partners urging financial transactions.
In addition to targeting known scam centers, the task force will also investigate the role of crypto platforms that may be unknowingly—or knowingly—facilitating these transactions. Exchanges that fail to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations could face increased scrutiny and legal consequences.
The DOJ and its partners are also engaging with international law enforcement agencies to share intelligence and coordinate cross-border takedowns. Given the global nature of cryptocurrency crimes, authorities stress the importance of international collaboration to track assets and apprehend suspects who operate outside U.S. jurisdiction.
Moreover, the Strike Force intends to put pressure on tech companies and social media platforms to better detect and prevent scammers from exploiting their services. Since many of these fraudsters initiate contact on such platforms, improved moderation and fraud detection tools could help reduce exposure.
In recent months, several high-profile arrests have been made in connection with crypto investment frauds. However, officials warn that these represent only the tip of the iceberg. The decentralized and anonymous nature of cryptocurrency makes it an attractive tool for criminals, and as blockchain technology evolves, so too do the methods used by bad actors.
The initiative reflects a growing recognition within the U.S. government that digital asset-related crimes require specialized responses. Traditional investigative techniques often fall short when dealing with decentralized financial systems, prompting agencies to invest in blockchain analytics tools and train personnel with expertise in digital forensics.
For the average consumer, the emergence of the Scam Center Strike Force sends a clear message: the U.S. government is intensifying its efforts to protect citizens from crypto-related fraud. However, officials stress that public vigilance remains a critical line of defense. Individuals are urged to thoroughly research any investment opportunity, verify the legitimacy of platforms, and remain skeptical of unsolicited financial advice—especially from strangers online.
As cryptocurrency adoption continues to expand, both regulators and consumers must adapt to an increasingly complex threat landscape. The Strike Force represents a significant step forward in that effort, symbolizing a more unified and technologically equipped approach to fighting digital fraud on a global scale.