FBI Seizes 127,000 Bitcoin in $8 Billion Bust of International Fraud Ring
Summary
- The Federal Bureau of Investigation said it seized 127,000 Bitcoin, worth about $8 billion, during a crackdown on an international fraud ring.
- The FBI said Operation Blackout marked the largest virtual-asset seizure in US government history.
- The FBI said it arrested about 300 people in places including Dubai and rescued trafficking victims, adding that it would pursue and dismantle criminal groups targeting Americans.
Forecast Trend Report by Period
The Federal Bureau of Investigation said it seized 127,000 Bitcoin worth about $8 billion in a crackdown on an international fraud ring and arrested hundreds of suspects.
Fox News reported on May 28 that the FBI uncovered a criminal network behind crypto investment scams and online romance scams through an international coordinated investigation dubbed Operation Blackout. The bureau described it as the largest virtual-asset seizure in US government history.
The FBI said it secured more than 127,000 Bitcoin while arresting Chen Zhi, chief executive officer of Cambodia's Prince Holding Group. The haul is worth about $8 billion at current prices and may have been worth more than $15 billion at the time of the seizure.
The investigation also targeted the Democratic Karen Benevolent Army, or DKBA, a Myanmar-based armed group. The DKBA, which is under US Treasury sanctions, is accused of conducting large-scale online fraud operations tied to Chinese criminal organizations.
The FBI said 275 people were arrested in Dubai during the investigation, and six of them are to be extradited to the US to face federal charges. Across the broader operation, authorities arrested about 300 people and rescued nearly 2,000 trafficking victims.
FBI Director Kash Patel said the scam compounds were not simple call centers but organized criminal enterprises that stole money from Americans and laundered funds. He added that the bureau would pursue and dismantle criminal groups targeting Americans.
The FBI also worked with Starlink, Elon Musk's satellite internet company. The bureau said it provided location data to Starlink to identify terminals used by the fraud ring, leading to the shutdown of more than 7,000 Starlink terminals operating in Myanmar.
