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FBI Seizes $8 Billion in Crypto in Largest U.S. Forfeiture Ever

In a worldwide effort to stop online investment scams, the FBI has taken $8 billion in cryptocurrency and arrested 300 people, primarily in Asia and the Middle East.

The FBI just completed its largest-ever financial seizure, taking control of more than $8 billion in cryptocurrency and arresting almost 300 people worldwide in a large-scale operation.

The crackdown targeted scam compounds across Myanmar, Cambodia, Thailand, and the UAE. 

Fox News reports that authorities are calling this the biggest cryptocurrency seizure ever made by the U.S. government. In addition, around 2,000 people who were reportedly forced to work at these facilities have been rescued.

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FBI’s Record-Breaking Crypto Seizure Targets Global Scam Networks

The main part of the operation involved arresting Chen Zhi, the CEO of Prince Holding Group in Cambodia.

In my research, I’ve discovered that the FBI seized over 127,000 bitcoin from an individual named Zhi. This was a substantial amount – worth over $8 billion when it was taken, and potentially as high as $15 billion according to some estimates. Zhi is now facing federal charges related to wire fraud and a conspiracy to launder money.

FBI Director Kash Patel addressed the scale of the operation directly. 

According to Patel, these scams aren’t just about phone calls; they’re large, organized criminal operations designed to steal money, hide illegal profits, and take advantage of many people.

He also reported that the bureau helped nearly 2,000 people who were victims of trafficking and stopped over $8 billion in fraudulent activity related to scam centers.

As a researcher, I’ve been looking into a large-scale effort we’re calling Operation Blackout. It actually encompasses at least four different investigations. For example, one part, Operation Zephyr Exodus, specifically targeted the Prince Holding Group, while another, Operation Sand Dollar, focused on identifying fraudulent investment schemes operating in the UAE.

These actions focused on groups believed to be connected to Chinese organized crime, and they specifically targeted American citizens.

Dubai police and the FBI jointly arrested 275 people. Six of those arrested are expected to be sent to the United States to face charges in federal court. According to Fox News, each of the nine locations involved in the scheme reportedly made $6 million each year through fraudulent activity.

FBI Seizes Over $8B in Crypto, Largest Forfeiture in U.S. History

Fox News reports that the FBI has recovered over $8 billion in cryptocurrency and apprehended almost 300 individuals involved in a worldwide effort to dismantle fraudulent operations based in Myanmar, Cambodia, and other locations.

— Wu Blockchain (@WuBlockchain) May 30, 2026

Human Trafficking and Forced Labor Fueled These Crime Operations

The impact of these illegal activities went far beyond just financial loss. It’s been reported that some of the groups involved even used human trafficking, forcing victims to carry out their scams.

Victims were allegedly tricked with offers of real jobs and visas, but then threatened with violence – including beatings and torture – to control them.

Operation Haochen targeted a fraud operation located in Kyaukhat, Myanmar, which was under the control of the Democratic Karen Benevolent Army (DKBA).

The DKBA is an armed group that has been sanctioned by the U.S. Treasury Department and is suspected of working with Chinese criminal organizations. The U.S. government officially identifies it as a group that operates across national borders to commit crimes.

The FBI seized $30 million tied to Tai Chang and connected compounds during that operation. 

In Thailand, a coordinated operation called the Shunda Compound Takedown, conducted with Thai authorities, resulted in two arrests. The operation also shut down a Telegram channel that was being used to recruit victims for a scam in Cambodia where criminals pretended to be law enforcement officials.

One victim lost $3 million to a romance scam tied to these networks. 

The report highlights that similar fraud schemes have tragically been connected to several suicides, and historically, extortion often targeted young people. These numbers demonstrate the significant and widespread impact these scams had on individuals’ lives.

Operation Level Up Alerts Thousands of Fraud Victims Before It’s Too Late

On top of enforcement, the FBI launched a proactive initiative called Operation Level Up. 

This program helps people who are currently being scammed in cryptocurrency investments by warning them before they lose any more money. To date, the FBI has contacted 8,935 victims through this initiative.

Surprisingly, most people contacted – 77% – didn’t realize they were being targeted by a scam. These alerts have already helped prevent around $562 million in financial losses, which highlights just how advanced and believable these scams have become.

This investigation started with reports of online crimes submitted to the FBI’s Internet Crime Complaint Center (IC3) during 2025.

The IC3 received almost 72,000 reports of losses totaling over $7.5 billion due to cryptocurrency investment scams that year. The FBI thinks the actual amount of fraud is much higher than reported.

As a crypto investor, I found it interesting to learn the FBI actually worked with Starlink during recent crackdowns. Apparently, they shared location data to identify and shut down over 7,000 satellite terminals in Myanmar that were being used for fraudulent activities. It’s a little unsettling to see that kind of cooperation, but it shows how seriously they’re taking down illegal operations, even if it impacts access to services like Starlink.

The United States Institute of Peace estimates that criminal groups like these steal about $64 billion worldwide each year.

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2026-05-30 14:18