Cryptocurrency Fraud,
Fraud Management & Cybercrime,
Fraud Risk Management
U.S. Attorney Jeanine Pirro Highlights Trump Administration’s Efforts to Secure Crypto for Investors
Recent cryptocurrency investment scams have predominantly focused on enticing individuals into fake online trading platforms, coercing victims into investing substantial funds by promising substantial returns. These scams are reportedly operated by transnational criminal networks, mainly situated in Southeast Asia, which employ deceptive identities and target victims in the U.S. through social media and text messaging, often escalating into romance scams.
The U.S. Treasury Department reported a staggering loss of $10 billion by Americans to organized crime scam centers in 2024, marking a 66% rise from the previous year. In response to this escalating threat, the U.S. Attorney for the District of Columbia has initiated the Scam Center Strike Force aimed at dismantling the criminal infrastructures operating within Southeast Asian countries like Cambodia, Laos, and Burma.
This task force is one of the pioneering initiatives led by U.S. Attorney Jeanine Ferris Pirro, a former New York prosecutor and Fox News commentator. Pirro emphasized that dismantling these crime groups aligns with President Donald Trump’s ambition for the U.S. to position itself as the global hub for the cryptocurrency industry. “It is vital for Americans to comprehend the secure utilization of this commodity,” Pirro stated, stressing the need to prosecute those who take advantage of public trust, ensuring Americans can invest confidently.
The Scam Center Strike Force’s approach will involve collaboration across various federal agencies, including the FBI, U.S. Secret Service, Treasury, and State Department, to fully dismantle offshore operations that host illegal crypto-investment platforms, shell companies, and forced-labor scam facilities. The task force aims to also target U.S.-based entities such as internet service providers and social media platforms that facilitate fraudulent activities.
According to the United Nations Office on Drugs and Crime, countries like Myanmar, the Philippines, and Laos have experienced a dramatic rise in cyber-fraud incidents linked to organized crime syndicates. Among the most common scams is the “pig butchering” method, where fraudsters deceitfully lure individuals into believing they are engaged in legitimate crypto investments or romantic interactions.
“Scam centers are transferring wealth from Main Street America to organized Chinese crime,” Pirro remarked, asserting that her office possesses the legal authority to charge foreign defendants and utilize asset seizure measures against foreign properties.
Financial fraud specialists have applauded this newly announced initiative but advocate for increased collaboration amongst banks, telecom companies, and digital service providers to implement robust consumer protection measures. Ken Palla, a former director at MUFG Bank, described the move as timely and critical, emphasizing the need for a collective effort to combat consumer scams.
The 2025 Global Anti-Scam Alliance’s State of Scams report surveyed over 46,000 individuals worldwide, revealing that 57% experienced a scam in the prior year, with 23% reporting financial losses. Though older adults are often perceived as more susceptible to these frauds, significant numbers of both older and younger demographics have fallen victim to scams online.
