US Freezes $701M in Crypto Tied to Myanmar, Cambodia Scam Hubs

The Department of Justice restrained more than $701 million in cryptocurrency tied to investment scams operating from Myanmar and Cambodia and filed criminal charges against two Chinese nationals accused of running a fraud compound that targeted U.S. investors.

The action was led by the DOJ’s Scam Center Strike Force and used court orders and voluntary cooperation from crypto exchanges. Officials said the assets were frozen, not yet forfeited, and that the $701 million figure could change as the investigation continues.

Prosecutors said the schemes recruited victims online and used trafficked workers at scam compounds to impersonate bank officials and law enforcement to extract money. The two defendants are accused of operating a fraud compound in Myanmar and of attempting to expand operations into Cambodia.

Investigators also took control of a Telegram channel used to recruit trafficked workers and disabled 503 fake investment websites tied to the schemes.

U.S. Attorney Jeanine Ferris Pirro described the action as part of a government-wide effort to fight cyber-enabled fraud, adding, “This Administration is lock-step in combatting these scams, and we are not done.” She said the office continues to identify funds stolen from victims.

Assistant Attorney General A. Tysen Duva warned of the cross-border threat: “Fraudsters who target Americans from overseas may believe they cannot be reached. We are working to ensure they cannot operate with impunity.”

The operation involved the FBI, the U.S. Secret Service, financial regulators and international partners. The Treasury Department has sanctioned Cambodian operators tied to scam centers, and the State Department has offered rewards for information connected to the so-called Tai Chang network in Myanmar. Treasury Secretary Scott Bessent said the government will pursue fraud networks “no matter where they operate or how well-connected they are.”

Officials highlighted the use of blockchain tracing tools to follow stolen assets on public ledgers. The DOJ said it will seek forfeiture of the restrained assets and may pursue efforts to return recovered funds to victims.

The government established a Strategic Bitcoin Reserve and Digital Asset Stockpile in 2025 that was partly funded with confiscated cryptocurrency. DOJ representatives said no final decision has been made on whether the newly restrained assets will be added to those holdings.

The action comes amid ongoing criminal activity in the crypto sector. The market’s total capitalization is near $2.6 trillion. In 2026, large incidents reported by authorities include a Jan. 12 exploit that cost $26.2 million, a Feb. 4 theft of $27.3 million, an April bridge exploit tied to the Lazarus Group that resulted in roughly $292 million lost, and a Drift Protocol hack with about $285 million taken.

The investigation is active. Officials said additional seizures, charges or recoveries may follow as authorities continue tracing funds and coordinating with domestic and international partners.