Executive Summary
- The U.S. government has created a “Scam Center Strike Force” to dismantle transnational “pig butchering” cryptocurrency scams.
- The multi-agency force will be led by the U.S. Attorney for the District of Columbia and involve the Departments of Justice, Treasury, and State.
- The announcement coincided with new Treasury Department sanctions against armed groups, companies, and individuals in Burma linked to scam centers.
- Authorities allege these scams are backed by Chinese organized crime and help fund the civil war in Burma.
WASHINGTON – The United States government has announced the formation of a multi-agency strike force to combat large-scale cryptocurrency scams known as “pig butchering,” which primarily originate from Southeast Asia. The initiative was revealed as the Department of the Treasury imposed a new round of sanctions against individuals and entities in Burma connected to these fraudulent operations.
New Task Force to Coordinate Federal Response
The newly formed “Scam Center Strike Force” will be led by the U.S. Attorney for the District of Columbia and is designed to dismantle the transnational criminal enterprises responsible for defrauding Americans of tens of billions of dollars. The effort will coordinate resources from the Department of Justice, the Treasury Department, the State Department, and other domestic law enforcement agencies to target the industrial-scale scam operations.
“The Administration will keep using every tool we have to go after these cybercriminals — wherever they operate — and to protect American families from their exploitation,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence, John Hurley, in a statement.
Sanctions Target Burmese Operation
Coinciding with the announcement, the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned several armed groups, companies, and individuals in Burma. The U.S. government alleges these entities are associated with scam centers backed by Chinese criminal organizations. The sanctioned groups include Trans Asia International Holding Group Thailand Company Ltd. and Troth Star Co. Ltd., with authorities stating that the proceeds from these scams are used to fund the ongoing civil war in Burma.
The “pig butchering” tactic involves operatives, who are often victims of human trafficking, working on a massive scale to build trust with individuals online before tricking them into fraudulent investment schemes or fake romantic partnerships, primarily involving cryptocurrency transactions.
A Multi-Faceted Government Approach
This initiative reflects a growing government focus on combating sophisticated cybercrime. “The DOJ’s Scam Center Strike Force reflects a hard truth: no single agency can tackle this alone,” said Ari Redbord, global head of policy and government affairs for TRM Labs. The government’s coordinated strategy aims to disrupt the financial infrastructure supporting these criminal networks. It is important to note that all individuals and entities named in sanctions are subject to legal processes, and those accused in criminal cases are presumed innocent until proven guilty in a court of law.