FBI Seizes Record $8 Billion in Cryptocurrency in Global Crackdown on ‘Scam Compounds’
Operation Blackout dismantles transnational cybercrime networks, rescues trafficking victims, arrests hundreds of suspects, and marks the largest cryptocurrency forfeiture in U.S. history.
The Federal Bureau of Investigation (FBI) has announced the seizure of more than $8 billion worth of cryptocurrency in what officials describe as the largest cryptocurrency forfeiture in U.S. history. The massive operation, codenamed Operation Blackout, targeted international scam compounds accused of orchestrating cryptocurrency investment fraud, romance scams, and large-scale cyber-enabled financial crimes affecting victims around the world.
According to the FBI, investigators confiscated more than 127,000 Bitcoin during the arrest of Chen Zhi, the chief executive of Cambodia-based Prince Holding Group. Authorities allege the group operated a network of scam compounds that generated billions of dollars through fraudulent cryptocurrency investment schemes and money laundering operations. Officials said the seized cryptocurrency was worth more than $8 billion at current market prices and may have exceeded $15 billion when originally seized.
Operation Blackout extended across Asia, the Middle East, and Africa, with law enforcement agencies from multiple countries coordinating raids on scam centers linked to organized crime. The FBI reported that nearly 300 suspects were arrested, while almost 2,000 individuals believed to have been trafficked into forced scam operations were rescued during the international crackdown.
One major focus of the investigation was the Democratic Karen Benevolent Army (DKBA), an armed militia operating in Myanmar that U.S. authorities have designated as a transnational criminal organization. Investigators allege that criminal syndicates with links to Chinese organized crime used territories under the group’s control to operate heavily guarded scam compounds where trafficked workers were forced to conduct online investment, romance, and impersonation scams targeting victims worldwide.
Authorities also revealed that the FBI partnered with Starlink to identify internet terminals being used by criminal organizations. Using geolocation intelligence, Starlink suspended more than 7,000 satellite terminals in Myanmar that investigators say were supporting fraudulent operations run from scam compounds.
The crackdown included several coordinated investigations under the Operation Blackout umbrella. In Dubai, authorities arrested 275 suspects, with six expected to face extradition to the United States. Investigators alleged that nine scam compounds raided in the city collectively generated approximately $6 million annually per compound through fraud targeting American victims. Additional operations dismantled criminal infrastructure in Cambodia, Myanmar, and Thailand.
FBI Director Kash Patel said modern scam compounds are far more sophisticated than traditional call centers, describing them as organized criminal enterprises designed to steal money, launder illicit proceeds, and exploit trafficked workers on an industrial scale. Officials emphasized that the bureau intends to continue pursuing international cybercrime networks regardless of where they operate.
The operation follows a sharp increase in cryptocurrency investment fraud reported through the FBI’s Internet Crime Complaint Center (IC3). During 2025, IC3 received nearly 72,000 complaints involving crypto investment scams, with reported losses exceeding $7.5 billion. The FBI believes the true global losses are significantly higher because many victims never report the crime.
Alongside enforcement actions, the FBI highlighted the success of Operation Level Up, an initiative that proactively identifies potential victims of cryptocurrency investment fraud. According to the bureau, investigators have already contacted nearly 9,000 victims, with more than three-quarters reportedly unaware they were being scammed. Officials estimate the program has prevented over $560 million in additional financial losses.
The record-breaking seizure underscores the growing global threat posed by organized cryptocurrency fraud networks. Investigators say these criminal enterprises increasingly combine cybercrime, human trafficking, money laundering, and transnational organized crime into highly coordinated operations that exploit victims across continents. Authorities have indicated that further arrests and asset seizures are expected as Operation Blackout continues to expand.
