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Coinbase freezes $3M as DOJ hits Southeast Asia scam networks

Coinbase has frozen over $3 million in cryptocurrency that was linked to scam operations in Southeast Asia.

Summary

  • Coinbase froze over $3M in crypto tied to Southeast Asia romance and investment scam networks.
  • Meta, Microsoft and Starlink helped disrupt accounts, hosting tools and internet kits used by scammers.
  • The DOJ action follows a wider fraud crackdown after $701M in crypto was frozen in April.

This action was part of a larger effort headed by the U.S. Department of Justice’s Scam Center Strike Force.

The operation focused on criminal organizations involved in romance scams, investment fraud, and schemes that force people into labor. Coinbase stated they collaborated with companies like Meta, Microsoft, and Starlink, as well as the Department of Justice and international law enforcement, by sharing valuable information.

Coinbase stated that this incident demonstrates no single company or organization can independently prevent scams.

The company emphasized that social media companies, banks, internet service providers, and law enforcement need to collaborate.

Meta and Microsoft disrupt online accounts

As part of a collaborative effort, we successfully removed over 1.4 million fake accounts, pages, and groups from Facebook and Instagram. In addition, Microsoft took action against approximately 20,000 fraudulent accounts that were connected to various scam operations. This was a significant step in disrupting these networks.

The Department of Justice (DOJ) today announced the results of its first “Disruption Week,” a new initiative to combat online fraud originating in Southeast Asia. Working with private companies, the DOJ and the Scam Center Strike Force, led by @USAttyPirro, successfully disrupted over 1.4 million scam accounts and seized $3.8 million in cryptocurrency. This effort aims to significantly reduce cyber and crypto fraud.

— U.S. Attorney DC (@USAO_DC) June 3, 2026

Starlink cut off internet access for thousands of devices being used for illegal activities. Additionally, police in Thailand arrested 63 individuals linked to scamming operations, as reported by Meta.

The companies explained that their work linked online scams to actual, physical scam centers. Meta stated that the information they shared helped authorities find the locations, accounts, and networks used by scammers.

Crypto tracking aids law enforcement

Coinbase explained that tracking blockchain transactions is important for catching criminals. They stated that publicly available blockchain records allow investigators to trace stolen cryptocurrency after it’s sent to fraudulent accounts.

According to Coinbase, blockchain technology offers law enforcement a significant advantage over traditional finance by providing a clear, unchangeable, and lasting record of all transactions.

This announcement follows growing concern from U.S. officials about investment scams involving cryptocurrency. The Department of Justice has identified schemes like ‘pig butchering’ and other investment frauds as particularly harmful to Americans.

Broader scam crackdown continues

This recent move is part of a larger effort to crack down on fraudulent cryptocurrencies and bogus investment schemes. Back in April, as crypto.news reported, U.S. officials blocked over $701 million in cryptocurrency linked to international scam operations.

The previous operation also shut down more than 500 fraudulent investment websites. These sites tricked people into adding more money by displaying fake account information and promising unrealistic profits, officials stated.

This year, police in multiple countries have been cracking down on scam operations. These efforts have included actions in the U.S., Thailand, Singapore, the UAE, Austria, Albania, and with other international partners.

Coinbase recently froze accounts, highlighting how cryptocurrency exchanges are increasingly involved in stopping fraud. The company plans to keep collaborating with both government and private organizations to prevent criminals from using their platform and to keep users safe.

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2026-06-04 08:12