FBI Seizes 127,000 Bitcoin Worth $8 Billion in Global Fraud Bust

The Federal Bureau of Investigation said it seized about $8 billion of Bitcoin and arrested hundreds of suspects in a crackdown on an international fraud network.

Fox News reported on May 28 that the FBI uncovered a criminal organization behind crypto investment scams and online romance scams through a coordinated international investigation dubbed Operation Blackout. The FBI described it as the largest cryptocurrency seizure in U.S. government history.

The agency said it secured more than 127,000 Bitcoin while arresting Chen Zhi, chief executive officer of Cambodian conglomerate Prince Holding Group. The holdings are worth about $8 billion at current market prices. At the time of the seizure, their value may have exceeded $15 billion, the FBI said.

The investigation also targeted the Democratic Karen Benevolent Army, or DKBA, an armed group based in Myanmar. The DKBA, which is under U.S. Treasury sanctions, is accused of conducting large-scale online fraud operations in coordination with Chinese criminal organizations.

In Dubai, 275 people were arrested as part of the investigation, the FBI said. Six of them will be sent to the U.S. to face federal charges. Across the broader operation, authorities arrested about 300 people and rescued nearly 2,000 victims of human trafficking.

"Scam compounds are not just call centers. They are organized criminal enterprises that steal funds from Americans and launder money," FBI Director Kash Patel said. "We will track down and dismantle criminal organizations targeting Americans."

The FBI also worked with Elon Musk's satellite internet company Starlink. It provided location data to help identify terminals used by the fraud network, leading to the shutdown of more than 7,000 Starlink terminals operating in Myanmar.