Washington strikes hard against illicit crypto networks. US authorities have blocked $700 million linked to a Chinese fraud ring in Southeast Asia. At the same time, Tether froze $344 million in USDT on two Tron wallets, which Washington links to Iran. Between fake investment sites, “pig butchering” type scams and evasion of sanctions, the United States is tightening its grip on suspicious digital flows.
In brief
- US authorities have blocked more than $700 million linked to a Chinese crypto scam ring.
- The operation targets scams in Southeast Asia, including pig butchering fraud.
- Tether has frozen $344 million in USDT across two Tron wallets, in coordination with US authorities.
- Washington links these funds to Iran and suspicions of sanctions evasion.
US authorities block $700M in crypto and target Chinese network
The US Department of Justice announced the blocking of $700 million in crypto in a vast offensive against criminal networks active in Southeast Asia. These groups operated digital asset fraud centers mainly targeting American victims.
In his press releasethe department indicated that the actions of the anti-fraud brigade notably include criminal proceedings against two Chinese nationals, arrested in this case. They are accused of running a crypto investment fraud network from Burma and of trying to open another center in Cambodia.
These structures would have been used to carry out so-called “pig butchering” scams. The scammers gradually gained the victims’ trust before encouraging them to invest on fake crypto platforms.
Authorities also seized 503 fake investment sites and took control of a Telegram channel linked to the recruitment of human trafficking victims.
In the same context, the Treasury Department announced sanctions against operators of crypto scam centers in Cambodia. For its part, the State Department announced rewards for information leading to the seizure or recovery of funds linked to the Tai Chang, Burma, fraud center.
Tether freezes $344M in Iran-linked USDT
Furthermore, and in the same context, Tether announced last Thursday that it had frozen $344 million in USDT on two Tron wallets. The company carried out this action in coordination with the Office of Foreign Assets Control and US law enforcement.
US authorities have targeted addresses suspected of circumventing sanctions and serving criminal networks. According to Tether, this operation represents its most significant enforcement action to date.
The two wallets contained approximately $212.9 million and $131.3 million in crypto. Before the freeze, US authorities had passed on intelligence linking these addresses to illegal activities. The block now prevents any transfer from the affected addresses. The funds therefore remain immobilized.
Furthermore, an American executive official told CNN that the government had information linking this currency to Iran. He claims that analysis of blockchain transactions made it possible to identify several connections with Iranian actors:
Working with blockchain analysis experts, the US government has observed evidence of material ties to the Iranian regime. This evidence includes confirmed transactions with Iranian exchanges and a series of transactions passing through intermediary addresses interacting with wallets associated with the Central Bank of Iran.
Furthermore, he explained that the Central Bank of Iran was using increasingly complex methods to hide its involvement in cross-border digital asset transactions. According to him, these mechanisms would serve to support the rial and facilitate international trade despite an increasingly restrictive sanctions environment.
This offensive confirms that the crypto market remains under increased surveillance. Between fraud, money laundering and sanctions, the American authorities want to show that they can track, block and neutralize suspicious digital flows on a large scale.
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