US Justice Department freezes and seizes $578 million tied to Southeast Asia-related crypto scam funds

The US Department of Justice said it has frozen and seized a large amount of virtual assets (cryptocurrency) linked to a Southeast Asia-based crypto fraud ring.

According to Cointelegraph on the 27th (local time), the DOJ’s Washington, DC-based Scam Center Strike Force announced it had frozen and seized $578 million in virtual assets (about 833.7 billion won) after investigating a website- and social media-based scam network believed to have been operated by a Chinese-linked transnational criminal organization. Authorities said the funds were tied to organized fraud targeting US residents.

The DOJ said it plans to pursue asset forfeiture through legal proceedings and maximize restitution for victims. This is interpreted as signaling that, rather than incorporating the funds into the US Strategic Bitcoin (BTC) Reserve established by executive order in March last year, the government will prioritize victim recovery. Public information suggests the US government is estimated to hold up to about 320,000 bitcoins through criminal seizures, but the White House has not disclosed an official figure.

Meanwhile, blockchain analytics firm Chainalysis said crypto-related fraud surged in 2025 from a year earlier. In particular, identity-impersonation scams rose by about 1,400%, and the average loss amount from that category increased by 600%, it said. So-called “pig butchering” investment scams—where perpetrators build trust with victims and then induce them to deposit funds—were cited as a major tactic.

In a related case, a US court recently sentenced the ringleader of a fraud that swindled more than $73 million to 20 years in prison. Authorities said they will pursue further fund tracing and the dismantling of the organization through international cooperation.