Coinbase freezes $3M as U.S. targets Southeast Asia scam rings

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Anastasiia Chabaniuk

10 hours ago

Coinbase freezes $3M as U.S. targets Southeast Asia scam rings — Coinbase freezes $3M in scam crypto

Coinbase said it froze more than $3 million in cryptocurrency linked to scam networks operating in Southeast Asia, part of a coordinated U.S. law enforcement and private-sector operation targeting crypto-enabled fraud. The action shows how exchanges, social-media platforms and internet providers are increasingly being pulled into efforts to disrupt “pig butchering” and investment scams before stolen funds disappear.

Highlights

Coinbase froze more than $3 million in crypto tied to Southeast Asian scam networks.
The wider DOJ-led operation froze more than $3.8 million in cryptocurrency.
Meta disabled more than 1.4 million accounts, pages and groups, while Microsoft suspended about 20,000 accounts.

DOJ coordinates disruption week

According to Coinbase, the operation was part of the Department of Justice’s Scam Center Strike Force “Disruption Week,” a coordinated effort involving federal agencies, foreign law enforcement and private companies. The DOJ said the initiative led private-sector partners to freeze more than $3.8 million in cryptocurrency tied to laundering funds stolen from Americans.

Coinbase said it froze more than $3 million of that amount and shared intelligence with Meta, Microsoft, Starlink, the DOJ and global law enforcement partners. The company said the targets included criminal groups involved in romance scams, investment fraud and forced-labor scam compounds.

Tech firms target scam infrastructure

The operation went beyond freezing funds. Meta said more than 1.4 million accounts, pages and groups across Facebook and Instagram were disabled, while Microsoft suspended about 20,000 fraudulent accounts. Starlink terminated connectivity for thousands of kits tied to unlawful use, and Meta said Royal Thai Police arrested 63 potential criminals connected to scam operations.

The DOJ said the effort also led to the decommissioning of servers, hosting infrastructure and malicious network connections linked to Southeast Asian scam networks. Participants included Apple, Coinbase, Google, Meta, Microsoft, Silent Push, SpaceX, TRM Labs and Zenlayer, alongside law enforcement partners from Australia, Canada, New Zealand, Thailand and the United Kingdom.

Blockchain tracking becomes an enforcement tool

The DOJ said reported losses from cryptocurrency investment fraud rose from $3.96 billion in 2023 to $5.8 billion in 2024, then increased 24% in 2025 to more than $7.2 billion.

Coinbase argued that public blockchains give investigators an advantage because transactions leave a permanent record. That claim is central to the industry’s defense as regulators scrutinize crypto’s role in illicit finance: exchanges can be used by scammers, but they can also help trace and freeze funds when they cooperate with law enforcement.

We have previously highlighted that Coinbase strengthens USDC role in Hyperliquid ecosystem.

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