$12.7 Billion in Crypto Scams Exposed by FinCEN
A recent analysis by FinCEN has revealed a staggering $12.7 billion in suspicious financial activity tied to crypto investment scams originating from Southeast Asian compounds.
The Treasury Department's Financial Crimes Enforcement Network (FinCEN) published the findings, along with an alert, drawing on more than two years of bank and crypto firm reporting to map how these operations extract money from Americans in every state.
Crypto money services businesses filed 55% of reports, flagging $5.5 billion, while banks filed 41% of reports, flagging $6.4 billion.
The mechanics behind these operations involve using at least 22 different digital assets to receive victim funds, with Ethereum, USDT, and USDC being the most commonly used. Scammers then convert funds into stablecoins, primarily USDT, before pushing them through DeFi protocols or offshore exchanges.