U.S. Launches New Strike Force to Combat $10 Billion Southeast Asian Scam Industry; OFAC Targets Burma-Based Cyber Scam Network

November 12, 2025 | Wellington Intelligence Analysis

TL;DR

• The U.S. Department of Justice, together with major federal law-enforcement and interagency partners, has launched the first Scam Center Strike Force, targeting Southeast Asian cryptocurrency-related fraud networks.

• OFAC has designated the Democratic Karen Benevolent Army (DKBA) and related entities for operating cyber scam centers aimed at U.S. victims.

• Americans lost at least $10 billion to Southeast Asia–based scam operations in 2024 — a 66% YoY increase.

• Targets include companies Trans Asia and Troth Star, which operate scam compounds using forced labor for large-scale crypto-investment fraud.

• The action builds on October’s major Prince Group case, highlighting continued U.S. focus on dismantling the infrastructure behind pig-butchering schemes.

• The Strike Force has already seized over $401 million in cryptocurrency, with an additional $80 million currently in forfeiture proceedings.

  
  

U.S. Establishes New Scam Center Strike Force

On November 12, 2025, the U.S. Attorney for the District of Columbia — together with the FBI and U.S. Secret Service — announced the creation of a Scam Center Strike Force, a dedicated interagency unit designed to investigate, disrupt, and prosecute high-level scam operations emanating from Southeast Asia.

Simultaneously, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated the Democratic Karen Benevolent Army (DKBA) — a Burma-based armed faction — along with four senior leaders and several companies tied to Chinese organized crime. These groups are accused of supporting large-scale cyber scam centers targeting U.S. citizens.

$10 Billion Lost: A Growing Cyber Fraud Crisis

Cryptocurrency-enabled scam activity originating from Southeast Asia has escalated to unprecedented levels. U.S. agencies estimate that American victims lost over $10 billion in 2024 alone — a dramatic 66% increase from 2023.

The majority of these losses stem from “pig butcher” (romance-investment hybrid) scams, where criminals manipulate victims over extended periods before directing them to deposit funds into fraudulent crypto investment platforms.

Recent intervention efforts reveal the scope of the threat:

• Over 6,300 victims were contacted by the FBI in the past 16 months, preventing an estimated $275 million in additional losses.

• The U.S. Secret Service responded to 3,000+ victim complaints involving crypto-investment schemes in FY 2025.

  
  

The DKBA and Scam Compound Infrastructure

The DKBA controls territory in Karen State, Burma, where major scam compounds operate — including the well-known Tai Chang compound near Myawaddy.The compound was established by DKBA Brigadier General Sai Kyaw Hla, in partnership with Trans Asia International Holding Group Thailand Co., identified as a proxy entity for China-based transnational criminal organizations.

This action follows October’s significant designation of the Prince Group Transnational Criminal Organization (TCO) and its 146 associated entities. Prince Group operated massive forced-labor scam zones across Cambodia and controlled one of the largest crypto fraud ecosystems globally.

October’s parallel case also involved a historic $15 billion civil forfeiture, including 127,000 BTC tied to Prince Group leader Chen Zhi.

While OFAC did not list crypto addresses in this particular designation, the scam compounds remain heavily crypto-dependent — victims are commonly manipulated into depositing Bitcoin, Ethereum, or stablecoins into platforms fully controlled by the scammers.

Understanding the Pig-Butchering Ecosystem

In a recent discussion between Chainalysis CEO Jonathan Levin and former FBI Deputy Assistant Director James Barnacle, several critical points were highlighted:

• Scam networks now leverage sophisticated operational structures and forced labor.

• Cryptocurrency transparency is a crucial advantage for investigators, enabling fund tracing across global laundering chains.

• The FBI’s Level Up victim-intervention initiative has become a major factor in preventing secondary victimization.

The combination of complex human-trafficking networks, crypto-based laundering, and advanced digital fraud techniques creates a uniquely dangerous threat landscape.

The Role of Huione and AI-Powered Scam Tools

The Southeast Asian scam ecosystem relies significantly on platforms like Huione, targeted by FinCEN in October 2025.

Key findings:

• Huione processed ~$100 billion in crypto transactions since 2021.

• It offers a marketplace of AI-powered services used by scammers — including identity fabrication tools, automated chatbots, and laundering services.

• Scam-tech vendors collected $375.9 million in crypto in 2024 alone.

• AI scam-tool vendors experienced a 1,900% CAGR from 2021–2024.

AI now accelerates fraud at scale, enabling scammers to target more victims with higher success rates and convincing synthetic identities.

Supporting Law Enforcement Through Blockchain Intelligence

Wellington Intelligence highlights the role that advanced blockchain analysis plays in these investigations.Platforms like Chainalysis enable:

• End-to-end tracing of victim deposits

• Mapping of entire scam ecosystems

• Identification of operators, technical infrastructures, money-laundering nodes, and service providers

• Asset seizure workflows

The Strike Force’s seizure of over $401 million in cryptocurrency demonstrates the operational effectiveness of these investigative tools.

Combating Scams with Advanced Technologies

With scammers increasingly utilizing AI, the defensive response must match their sophistication.AI-driven fraud-detection platforms — such as Chainalysis Alterya — allow institutions to:

• Detect suspicious patterns in real time

• Flag potential scam transactions before funds are lost

• Protect customers from pig-butchering schemes and other high-risk fraud vectors

  
  

Implications for Compliance and Risk Management

Organizations should remain alert to transactions involving newly designated entities and individuals.Recommended actions:

• Screen all counterparties against updated OFAC sanctions lists

• Monitor for scam-related behavioral patterns

• Implement enhanced due diligence for unfamiliar inbound investment activity

• Watch for signs of AI-generated personas, scripted investment pitches, and funnel-style transaction patterns

The launch of the Scam Center Strike Force reflects a stronger, more coordinated U.S. crackdown on transnational crypto-fraud networks.

Learn How Wellington Intelligence Supports Anti-Fraud Operations

Organizations seeking to protect their clients from sophisticated crypto-enabled fraud can request a consultation to better understand how blockchain intelligence, forensic monitoring, and strategic risk frameworks can secure their digital asset environments.