DOJ Strikes Down Chinese-Run Scam Centers, Seizes $52M in Cryptocurrency
The U.S. Department of Justice's Scam Center Strike Force has conducted a series of coordinated actions to dismantle Chinese-run scam centers in Southeast Asia. The operation, which took place over one day, resulted in the restraint of $52 million worth of cryptocurrency involved in money laundering.
According to the DOJ, Xinbi Guarantee is an illicit marketplace for scam services that operated on Telegram. Vendors on this platform marketed their services to scam center operators, including creating custom scam investment websites and laundering or 'washing' money obtained from victims of wire fraud.
The Scam Center Strike Force deployed a team to Madagascar to assist local law enforcement in cracking down on scam centers in the country. The team assisted in the processing of over 3,200 electronic devices and opened investigations based on interviews with nearly 400 arrestees, including at least 30 Chinese leaders of the scam compounds.
U.S. Attorney Jeanine Ferris Pirro emphasized that transnational criminal organizations do not care about borders, and the Department of Justice will not either. She vowed to continue dismantling international scam networks and bringing justice to U.S. fraud victims.