U.S. Justice Department reports $3.8 million crypto freeze in anti-scam disruption push

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DOJ $3.8M crypto freeze

Highlights

U.S. Department of Justice's Disruption Week results in $3.8 million worth of cryptocurrency voluntarily frozen by private sector partners linked to scam proceeds.
Joint operation with tech firms and international law enforcement disrupts over 1.4 million scam-related accounts and infrastructure, leading to seven arrests in Thailand.
FBI reports crypto investment scam losses rise from $3.96 billion in 2023 to $5.8 billion in 2024 and project $7.2 billion for 2025, underscoring escalating fraud risk.

Disruption week targets scam infrastructure

As announced by the U.S. Department of Justice, the operation brings together federal agencies, foreign law enforcement and private companies for what officials describe as a first-of-its-kind coordinated disruption effort. Authorities say private sector participants voluntarily freeze more than $3.8 million in cryptocurrency linked to laundering proceeds stolen from Americans and interrupt millions of social media, email and internet access accounts used by transnational crime groups.

The meetings take place in Washington from May 18 to May 21 and include investigators from the FBI, the U.S. Secret Service and Homeland Security Investigations, along with representatives from Apple, Coinbase, Google, Meta, Microsoft, Silent Push, SpaceX, TRM Labs and Zenlayer. Foreign counterparts from Australia, Canada, New Zealand, Thailand and the UK also join the effort, while Meta plays a central role in coordinating participation across the private sector.

Officials say the actions span more than 1.4 million social media and email accounts, malicious IP traffic, scam-linked network connections, and hosting infrastructure across Southeast Asia. The initiative also leads to referrals for U.S. investigations, seven arrests in Thailand and new cases opened by the Royal Thai Police Anti Cyber Scam Center.

Rising fraud losses raise pressure on industry

Crypto investment fraud remains one of the fastest-growing and most damaging fraud categories affecting Americans, with victims often persuaded over time to place funds into fake platforms showing fabricated returns. The schemes continue until victims run out of money or discover the deception, at which point contact typically stops.

FBI Internet Crime Complaint Center data cited by the Justice Department show investment scams become the most commonly reported crime type in 2023, with cryptocurrency investment fraud accounting for 83 percent of that category. Reported losses rise from $3.96 billion in 2023 to $5.8 billion in 2024, then increase another 24 percent in 2025 to more than $7.2 billion, according to the newly released IC3 annual report.

The department says many operations are run from large compounds in Cambodia, Laos and Burma near the Thai border, where trafficked workers are forced to conduct fraud under threats of violence. Officials add that the Scam Center Strike Force has already filed criminal complaints, seized cryptocurrency and infrastructure, and expanded coordination with private industry as it seeks to push organized scam networks off U.S. digital platforms.

Our earlier analysis of Coinbase (COIN) noted that the stock was trading under key moving averages, with bearish momentum pointing to a likely $160–$175 range and risk of further downside. The piece also highlighted Coinbase’s recent expansion efforts—such as its partnership with Ethena and steps to align stablecoin reserves with regulatory requirements—alongside a cautious technical outlook focused on the $160 support level.

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