FBI Seizes Record $8 Billion in Cryptocurrency in Global Crackdown on Scam Compounds
May 28, 2026 — Fox News Report
In a landmark operation hailed as the largest cryptocurrency seizure in U.S. history, the Federal Bureau of Investigation (FBI) has confiscated over $8 billion in cryptocurrency assets while arresting hundreds of suspects worldwide. This crackdown targets so-called "scam compounds," sprawling criminal enterprises that orchestrate large-scale online fraud, money laundering, and human trafficking.
Largest Crypto Forfeiture in U.S. History
The FBI announced the confiscation of more than 127,000 bitcoins during the arrest of Chen Zhi, CEO of the Cambodian-based Prince Holding Group. At the time of seizure, the cryptocurrency assets were valued at over $8 billion, and given Bitcoin’s price volatility, estimates suggest the value may have exceeded $15 billion. Officials are calling this the largest forfeiture ever by the U.S. government in terms of cryptocurrency.
Targeting Transnational Criminal Organizations
Among the groups targeted is the "Democratic Karen Benevolent Army," an armed militia originating from Myanmar. This group, with alleged ties to Chinese organized crime, is under U.S. Treasury sanctions for their involvement in extensive fraud operations. The FBI and U.S. government have designated the organization a transnational criminal enterprise.
The scam compounds, located in Asia, Africa, and the Middle East, have been linked to numerous schemes defrauding American citizens. In one documented case, a single U.S. victim lost as much as $3 million to an online scam attributed to these networks.
Global Effort to Disrupt Scam Operations
The comprehensive operation saw FBI agents collaborate with international law enforcement, including local authorities in Cambodia, Thailand, and Dubai. Dozens of compounds were raided, resulting in hundreds of arrests. In Dubai alone, 275 suspects were detained; six will be extradited to the United States to face federal charges.
The FBI shared images showing thousands of confiscated mobile phones and office equipment from these centers, emphasizing the sophisticated and organized nature of these scams. Agents have described scam compounds not merely as call centers but as sprawling criminal enterprises designed to defraud victims, launder illicit gains, and exploit trafficked individuals.
Collaboration With Technology Partners
The operation also involved cooperation with private sector partners. Notably, the FBI worked with Elon Musk’s satellite internet service Starlink, which suspended over 7,000 terminals in Myanmar that were reportedly used by scammers to carry out their illicit activities.
Statements From FBI Leadership
FBI Director Kash Patel underscored the bureau’s commitment to dismantling these illicit networks. "Scam compounds are not just call centers. They are organized criminal enterprises built to steal from Americans, launder money, and exploit people at scale," Patel said. He highlighted successful operations, including the takedown of the Prince Group and "Operation Sand Dollar" in Dubai. "We helped free nearly 2,000 trafficked workers, shut down more than $8 billion in scam center fraud, and arrested nearly 300 people," he added.
Patel issued a stern warning: "If you target Americans, we will find you, disrupt your network, and bring every available tool of the federal government down on you."
Charges and Ongoing Investigations
Chen Zhi faces federal charges of wire fraud and conspiracy to commit money laundering. The FBI stated that these investigations have been a priority for over a year and additional operations are ongoing in other parts of the globe to dismantle similar compounds allegedly tied to Chinese organized crime.
This unprecedented law enforcement effort underscores growing governmental focus on cryptocurrency-related crime and highlights the complexities of combating transnational fraud schemes that incorporate advanced technology and cross-border networks. The FBI continues to encourage the public to report suspicious online activity and remain vigilant against potential scams.
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