FBI Seizes 127,000 Bitcoin in Global Scam Network Bust

• FBI’s Operation Blackout seized over $8 billion and dismantled a global crypto scam network.
• Nearly 2,000 trafficked workers were freed as authorities shut down scam compounds worldwide.
• The FBI says crypto fraud networks increasingly combine scams, money laundering, and trafficking.

The FBI has broken up a vast cryptocurrency fraud network that authorities say stole billions of dollars from victims around the world. The operation, which stretched across Asia, Africa, the Middle East and the United Arab Emirates, targeted criminal groups accused of running online investment and romance scams while forcing thousands of people to work in scam compounds.

As part of the crackdown, U.S. investigators seized more than 127,000 bitcoin linked to Cambodian businessman Chen Zhi, chief executive of Prince Holding Group, according to a Fox News report. Officials described it as the largest cryptocurrency forfeiture in U.S. history. The FBI said the network generated billions of dollars by targeting Americans through sophisticated online scams.

FBI Targets Expanding Scam Empire

The arrests and asset seizures were part of Operation Blackout, an FBI-led effort to dismantle international fraud networks that use cryptocurrency scams to target victims around the world. In addition, investigators shut down several scam compounds operating across multiple countries.

The investigation highlighted how these criminal networks have expanded beyond online fraud. According to the FBI, many of the groups were also involved in money laundering and human trafficking, using forced labor to keep their operations running.

FBI Director Kash Patel said the scam compounds functioned as large-scale criminal enterprises designed to defraud victims and move illicit funds. He said FBI operations across Southeast Asia and the Middle East disrupted major networks, helped free nearly 2,000 trafficked workers, shut down more than $8 billion linked to scam-center fraud, and led to nearly 300 arrests.

Investigators also connected several scam compounds to the Democratic Karen Benevolent Army, a Myanmar-based militia that U.S. authorities have designated as a transnational criminal organization. Officials allege the group supported large-scale fraud operations and maintained links to Chinese organized crime networks involved in online scams.

Human Trafficking Fueled Operations

Investigators said many of the scam centers relied on forced labor, with criminal networks allegedly luring workers through fake job offers and promises of visas. Once recruited, many victims were reportedly coerced into carrying out online fraud schemes through threats, intimidation, and violence.

Authorities also linked several compounds to Chinese organized crime groups operating across Asia, Africa, and the Middle East. According to investigators, the networks primarily targeted victims in the United States while running large-scale fraud operations from overseas.

In Dubai, law enforcement agencies arrested 275 suspects as part of the crackdown. Officials said six of those arrested are now facing extradition to the United States. Authorities added that nine compounds dismantled in the operation generated an estimated $6 million a year from fraudulent activities.

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Technology and Prevention Efforts Expand

The FBI also broadened its technological efforts to disrupt the fraud networks. Working with Starlink, investigators identified internet terminals allegedly linked to scam compounds, leading the company to suspend more than 7,000 terminals operating in Myanmar.

At the same time, authorities expanded victim-protection measures through Operation Level Up, a program designed to intervene before victims lose significant amounts of money. The initiative has contacted 8,935 potential victims, with officials saying 77% were unaware they were being targeted. Investigators estimate the program helped prevent roughly $562 million in financial losses.

The operation comes amid mounting concerns over the rapid growth of cryptocurrency-related fraud. The FBI’s Internet Crime Complaint Center (IC3) received nearly 72,000 crypto investment fraud complaints in 2025, representing more than $7.5 billion in reported losses.

Investigators believe the true figure is likely much higher, as many victims never report the crimes. Separately, the United States Institute of Peace estimates that global criminal syndicates generate about $64 billion a year through similar scam operations.

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