The Federal Bureau of Investigation (FBI) announced the seizure of cryptocurrency worth approximately $8 billion and the arrest of hundreds of suspects during a sweeping international crackdown on so-called scam compounds and transnational criminal organizations. Among the groups identified was the Democratic Karen Benevolent Army (DKBA). GetBlock AML Research reviews what U.S. authorities describe as the largest crypto asset seizure in American history.

The Trail Leads to Prince Group

We previously reported on this seizure, but at the time there had been no official confirmation from U.S. authorities. The FBI has now acknowledged the confiscation and released additional details.

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Investigators believe these organizations were involved in a global fraud wave that victimized thousands of people worldwide, including U.S. citizens. In one case, an American reportedly lost approximately $3 million after falling victim to an online scam.

During the arrest of Chen Zhi, the CEO of Cambodian conglomerate Prince Holding Group and an alleged leader of the criminal network, the FBI seized more than 127,000 Bitcoin. At current market prices, the assets are worth more than $8 billion, and their value may have exceeded $15 billion at the time of seizure. U.S. authorities describe it as the largest cryptocurrency confiscation in the history of the federal government.

The Democratic Karen Benevolent Army (DKBA) is an armed group operating in a region of Myanmar. According to U.S. authorities, the organization has ties to Chinese organized crime and has previously been sanctioned by the U.S. Treasury Department for its involvement in large-scale fraud operations. The U.S. government has formally designated it as a transnational criminal organization.

Photographs released following one operation in Thailand show thousands of confiscated smartphones, computers, and other equipment allegedly used in scam centers.

Equipment seized from scam compounds. Source: FBI

From Asia to the Middle East

According to investigators, similar scam compounds operated not only across Asia but also in Africa and the Middle East. Many have been linked to Chinese criminal organizations, with U.S. citizens serving as primary targets. International efforts to identify and dismantle these centers remain ongoing.

FBI Director Kash Patel said the bureau participated in operations ranging from the dismantling of Prince Group-linked networks in Cambodia to Operation Sand Dollar in Dubai. In Thailand, FBI personnel seized thousands of smartphones and large quantities of office equipment during raids on scam compounds.

In Dubai, a joint operation conducted by local police and the FBI resulted in the arrest of 275 individuals. Six suspects are expected to be extradited to the United States to face federal charges. Investigators allege that each of the nine scam compounds dismantled in Dubai generated approximately $6 million in illicit revenue annually.

Authorities also claim that Prince Group operated similar secured compounds in multiple countries. Chen Zhi has been charged with wire fraud and conspiracy to commit money laundering.

FBI officials stated that combating these criminal networks has been one of the bureau’s top priorities over the past year.

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How Asian Scam Compounds Made Their Money

An FBI agent described a case in which a victim lost $3 million through a romance scam. In these schemes, criminals build trust with victims online before persuading them to transfer funds. Investigators say other forms of fraud have also been linked to multiple suicides, particularly sextortion schemes targeting teenagers.

The investigation further revealed that some scam organizations relied on victims of human trafficking as part of their workforce. Individuals were often lured by promises of high-paying jobs and work visas. Upon arrival, they allegedly found themselves trapped in facilities controlled by criminal groups and were forced to participate in fraudulent schemes under threats of violence, abuse, and coercion.

Starlink Played a Role

To identify criminal operators, the FBI worked with satellite internet provider Starlink. The bureau supplied location data associated with devices allegedly used by fraud networks. As a result, more than 7,000 Starlink terminals operating in Myanmar were reportedly disabled.

The broader investigation began after a surge of complaints submitted to the FBI’s Internet Crime Complaint Center (IC3) in 2025.

Over the course of the year, IC3 received nearly 72,000 reports involving cryptocurrency investment fraud. Reported losses exceeded $7.5 billion. The FBI believes the actual figure is substantially higher, as many victims never report the crimes.

How the Operation Unfolded

According to estimates from the United States Institute of Peace, international criminal syndicates steal approximately $64 billion every year through these types of schemes.

The broader enforcement effort, known as Operation Blackout, included at least four major investigations. One of them, Operation Zephyr Exodus, targeted activities linked to Prince Holding Group.

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Another component, Operation Sand Dollar, focused on scam compounds operated by organized crime groups throughout Asia. Investigators allege these organizations used infrastructure in the United Arab Emirates to target and defraud U.S. citizens.

A separate effort, Operation Haochen, targeted the Tai Chang scam compound in Myanmar’s Kyaukhat area, which is reportedly controlled by the DKBA. According to investigators, the facility maintained connections to Chinese criminal organizations. During the investigation, the FBI seized approximately $30 million linked to Tai Chang and other scam operations.

Another operation, known as the Shunda Compound Takedown, was conducted jointly by FBI personnel and Thai law enforcement. Authorities arrested two individuals and shut down a Telegram channel allegedly used to recruit people into forced labor schemes where scammers posed as Cambodian law enforcement officers.

In addition to enforcement actions, the FBI operates a prevention initiative known as Operation Level Up. The program is designed to identify victims of cryptocurrency investment fraud and alert them before they suffer additional losses.

To date, program personnel have contacted 8,935 potential victims. According to the FBI, 77% were unaware they were involved in a fraudulent scheme. The bureau estimates these interventions prevented approximately $562 million in additional losses.