U.S. authorities report that more than $1 billion in cryptocurrency tied to fraud and scam operations has been restrained, even as overseas criminal networks linked to Chinese transnational groups broaden their footprint beyond traditional bases in Southeast Asia.
The Department of Justice’s Scam Center Strike Force, working with the FBI, U.S. Secret Service, and other partners, disclosed the milestone alongside new charges against six individuals based in Africa.
Those defendants, described as having ties to Southeast Asia and China, are accused of running a scheme that targeted Americans through fabricated nonfungible token investment opportunities.
Court documents outline an alleged operation in which a group connected to Malaysia and China established scam compounds in Madagascar in early 2025. Investigators believe the activity shifted from Cambodia after earlier law-enforcement pressure in that country.
Participants allegedly created profiles of attractive women on dating websites to initiate contact with U.S. victims.
After building rapport, the operators encouraged targets to link their cryptocurrency wallets to websites presented as legitimate NFT investment platforms.
Once the connection was made, victims were prompted to add more funds to their wallets; the operators then allegedly withdrew assets without the owners’ awareness or consent.
FBI analysis identified roughly 74 cryptocurrency wallets linked to the scheme and associated with approximately 800 victims across the United States who reported losses after interacting with the fraudulent sites.
Proceeds were reportedly moved to accounts connected with actors based in China.
Related websites used in the scheme have also been seized.
Among those charged is Chui Kok Wa, identified as a leader of the NFT-related activity and accused of conspiracy to commit wire fraud.
Material recovered from his phones included employment contracts that set overnight work schedules in Madagascar to align with daytime and evening hours in the United States, along with bonus structures tied to amounts taken from victims.
The devices also contained instructional scripts directing workers to exploit victims’ emotions and trust to induce investment, as well as employee rosters listing names, passport details, pay, hours, disciplinary notes, and associated wallet addresses.
U.S. Attorney Jeanine Ferris Pirro stated that Chinese-linked groups are deploying operators into dating apps, social networks, and messaging platforms to extract funds from ordinary Americans.
She noted that the Strike Force’s efforts over the past year against compounds in Southeast Asia have contributed to the more than $1 billion in restrained cryptocurrency, and she indicated the unit will continue expanding its reach to follow operations into Africa, Europe, and other regions.
The announcement also referenced additional enforcement steps, including the seizure of 700 fraudulent cryptocurrency investment websites and actions against Starlink terminals used to sustain internet access at scam sites.
In August 2026, an FBI team assisted Madagascar authorities in dismantling 13 compounds and processing more than 3,200 electronic devices.
U.S. officials have called on Madagascar to extradite the six charged individuals and to permit interviews of additional potential witnesses. The Strike Force, launched in November 2025, focuses on cryptocurrency investment fraud, related cyber schemes, and associated money laundering and trafficking activities that have generated substantial reported losses for American victims.
