FBI seizes $8B crypto, arrests hundreds in scam crackdown

Operation Blackout Targets Global Scam Networks

The unprecedented operation, dubbed “Operation Blackout,” has led to the confiscation of over 127,000 Bitcoin during the arrest of Chen Zhi, the CEO of Cambodia’s Prince Holding Group. This seizure alone is valued at more than $8 billion, and potentially over $15 billion at the time of its acquisition, marking it as the largest forfeiture in U.S. government history, according to the FBI. These criminal enterprises are accused of stealing millions from individuals, with one U.S. citizen reportedly losing as much as $3 million to an online scheme.

Unprecedented Seizures and Cross-Continental Arrests

The Democratic Karen Benevolent Army (DKBA), an armed militia based in Myanmar, is among the key targets, facing U.S. Treasury sanctions and designated as a transnational criminal organization due to its alleged ties to the Chinese mob and large-scale scamming operations. FBI Director Kash Patel emphasized the nature of these operations, stating, “Scam compounds are not just call centers. They are organized criminal enterprises built to steal from Americans, launder money, and exploit people at scale.”

The crackdown involved multiple raids across Asia, Africa, and the Middle East, with compounds allegedly tied to Chinese organized crime specifically targeting Americans. In Dubai, a joint effort with local police resulted in 275 arrests, with six individuals slated for extradition to the United States to face federal charges. Photos from Thailand reveal massive seizures of thousands of smartphones and office equipment, underscoring the scale of these illicit operations. Each of the nine compounds raided in Dubai alone was reportedly generating $6 million in fraud proceeds annually. Chen Zhi faces federal charges of wire fraud and money laundering conspiracy.

Protecting Americans and Disrupting Criminal Enterprises

The FBI has prioritized disrupting these criminal networks over the past year. The bureau reported that some schemes, including romance scams, have led to significant financial ruin for victims, with instances of fraud linked to suicides, particularly from extortion cases targeting teenagers. Disturbingly, many of these groups reportedly rely on human trafficking victims for labor, luring them with false promises of income and visas, only to force them into scam operations under threat of violence.

In a crucial partnership, the FBI collaborated with Starlink, providing geolocation data that enabled the satellite company to suspend over 7,000 terminals in Myanmar used by scammers. This initiative stems from a surge in complaints received by the FBI’s Internet Crime Complaint Center (IC3) in 2025, which recorded nearly 72,000 complaints detailing over $7.5 billion in losses from cryptocurrency investment fraud. The FBI warns that these figures likely “wildly underrepresent actual losses,” with estimates from the United States Institute of Peace suggesting criminal syndicates steal approximately $64 billion annually.

Key Operations and Strategic Partnerships

Operation Blackout encompassed several distinct investigations. Operation Zephyr Exodus focused on the Prince Holding Group, while Operation Sand Dollar targeted scam compounds in Asia preying on American citizens in the United Arab Emirates. Operation Haochen investigated the Tai Chang scam compound in Myanmar, which was allegedly connected to Chinese criminal actors and resulted in the seizure of $30 million. The Shunda Compound Takedown, a joint effort with Thai partners, led to arrests and the dismantling of a Telegram channel used to recruit forced labor.

Additionally, the FBI launched Operation Level Up, a proactive measure designed to identify and notify victims of cryptocurrency investment fraud. This initiative has already informed 8,935 victims, 77 percent of whom were unaware they were being scammed, preventing an estimated $562 million in potential losses. This widespread enforcement action signals a robust commitment from the FBI to dismantle these sophisticated criminal networks and safeguard individuals from financial exploitation, building on previous efforts such as when the DEA and FBI seized $10 million in cryptocurrency directly linked to the Sinaloa Cartel.