The FBI has seized over 127,000 Bitcoin worth nearly $8 billion in an international crackdown on scam networks, resulting in hundreds of arrests.
The FBI has successfully seized over 127,000 BTC, worth around $8 billion, in a significant crackdown on international scam networks dubbed Operation Blackout. This operation spanned regions including Asia, Africa, and the Middle East, resulting in the arrests of nearly 300 individuals and the rescue of approximately 2,000 victims forced into fraudulent activities.
Among the seizures, an estimated $30 million was confiscated from scam-related entities in Myanmar, with a substantial portion of the Bitcoin connected to Cambodian businessman Chen Zhi, chairman of the Prince Holding Group.
Chen Zhi is facing serious allegations as part of a forfeiture lawsuit filed by the U.S. Department of Justice, which claims he orchestrated a network of scam centers in Cambodia that coerced individuals into cryptocurrency investment schemes. The extent of the fraud is believed to have caused global losses amounting to billions.
Details of the Scam Operations
The fraudulent schemes utilized a tactic known as pig butchering, whereby scammers built trust with victims through social media before luring them into fake investment opportunities. Once the victims sent their funds, the platforms would vanish, and the money would be withdrawn.
Such scams have been identified by U.S. authorities as among the most damaging types of cryptocurrency fraud, with reported losses climbing from $5.8 billion in 2024 to over $7.2 billion in 2025.
The operation's infrastructure has been traced to industrial centers in Cambodia and along border areas in Myanmar and Thailand. If the court approves the forfeiture of the seized BTC, part of the funds may be used for compensating the victims affected by these schemes.
This operation marks a significant effort in combating both crypto fraud and human trafficking, with ongoing investigations revealing the broader network of these illegal activities. The U.S. Treasury has also placed sanctions on multiple entities in Myanmar and Cambodia associated with such scams.
