The U.S. government is intensifying its efforts against Chinese organized crime syndicates involved in fraudulent cryptocurrency schemes targeting American citizens. U.S. Attorney Jeanine Pirro announced the launch of a specialized strike force aimed at dismantling these shady operations during a news conference.
Overview of the New Strike Force
This new initiative will focus on gathering evidence against the leaders of scam organizations. The objective is to trace stolen funds, return money to victims, and disable the online infrastructure enabling these scams.
Impact of Cryptocurrency Scams
In 2024 alone, these fraudulent schemes have cost Americans over $9 billion. Experts suggest that losses may actually be as high as $135 billion due to underreported cases.
Scamming Tactics Used by Criminals
The fraudsters primarily target older Americans, exploiting their feelings of loneliness. They initiate contact through social media, gaining trust before moving conversations to encrypted messaging platforms. Victims are often directed from legitimate cryptocurrency sites to counterfeit platforms created by the scammers.
Recent Developments and Actions Taken
- $400 million has been seized from various scam activities.
- Additionally, there are efforts underway to reclaim another $80 million for victims.
- The U.S. Treasury has imposed sanctions against an armed group in Burma connected to these scams.
Key entities identified include Trans Asia International Holding Group and Troth Star Company, both linked to organized crime in China. Their past collaborations with the Democratic Karen Benevolent Army (DKBA) have raised concerns over the breadth of these criminal networks.
Collaborative Efforts to Combat Scams
Tech giants and other organizations, such as Meta and Microsoft, are cooperating with the strike force to bolster protective measures for potential scam victims. This collaboration aims to safeguard American citizens against further fraudulent activities.
Jeanine Pirro reiterated her commitment to combating these criminal enterprises, stating, “My office will not stand by as these operations deplete the resources of hardworking Americans.”
Conclusion
The formation of this strike force represents a significant step toward combating the alarming trend of cryptocurrency scams that jeopardize the financial security of countless Americans. Ongoing investigations and international cooperation will be crucial in eradicating these fraudulent operations.
