U.S. Department of Justice Launches Major Crackdown on Southeast Asian Fraud Hubs, Freezing Over $700 Million in Cryptocurrency

According to an official announcement by the U.S. Department of Justice (DOJ), the DOJ’s Fraud Enforcement Task Force announced a coordinated series of actions against a Southeast Asian criminal organization on April 23: indicting two Chinese nationals—Huang Xingshan and Jiang Wenjie—who served as managers at the “Shunda Fraud Center” in Myanmar. The two are accused of forcing trafficked laborers to conduct cryptocurrency investment fraud and have been arrested in Thailand. The Task Force also seized a Telegram channel with over 6,000 followers, which was used to lure individuals to fraud centers in Cambodia for forced labor; and simultaneously seized 503 fraudulent domain names disguised as legitimate investment platforms. On the financial front, the Task Force has frozen over $701 million in cryptocurrency suspected of being linked to fraud-related money laundering. Through “Operation Level Up,” it has notified 8,935 victims, estimating that approximately $563 million in potential losses has been recovered. Additionally, the U.S. Department of State has announced a reward of up to $10 million for information leading to the identification or location of individuals connected to the “Taichang Fraud Center” in Myanmar; the Department of the Treasury has concurrently imposed sanctions on relevant individuals and entities in Cambodia. According to FBI data, U.S. losses from cryptocurrency investment fraud reached $7.2 billion in 2025—a 24% increase over 2024.