The US Department of Justice Freezes $701 Million in Cryptocurrency, Disrupts Large-scale Rug Pull Scam

BlockBeats News, April 25th. The U.S. Department of Justice Fraud Section Rapid Deployment Force, in conjunction with law enforcement partners, has frozen over $701 million in cryptocurrency related to a U.S. overseas investment scam. This marks one of the largest single-day enforcement actions against the Southeast Asia "pig slaughter" network to date. In addition to the asset freeze, a Telegram channel used to recruit job seekers into the Cambodian fraud zone was taken down, over 503 fake investment websites were seized and replaced with a law enforcement warning page. Federal prosecutors have also criminally charged two Chinese citizens, Huang Xingshan and Jiang Wenjie (phonetic), who are accused of involvement in cryptocurrency investment fraud in the Myanmar Sun Da Zone. The U.S. Department of State has offered a $10 million reward for information related to the Myanmar Tai Chang Fraud Center.

The global efforts to combat cryptocurrency scams are intensifying. The Singapore Police Force concurrently launched a one-month special operation, leveraging platforms such as Coinbase, Gemini, and analysis firms like Chainalysis to rapidly identify victims. Through over 90 direct interventions, they have prevented potential losses exceeding $2.86 million. An FBI report indicates that as of 2025, there have been over 1 million reports of cybercrime, resulting in approximately $21 billion in losses. Authorities worldwide are accelerating coordination efforts to dismantle cryptocurrency fraud hotbeds.