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UNIPirro says US has restrained $1bn in crypto as scam networks spread to Africa
The Justice Department's Scam Center Strike Force has restrained more than $1bn in cryptocurrency tied to fraud, with new charges over an alleged Madagascar dating scam targeting about 800 Americans.
Why it matters: The case shows US prosecutors extending crypto fraud enforcement from Southeast Asian compounds into Africa, with more than $1bn in assets now restrained.
Key points
- US Attorney Jeanine Ferris Pirro said on 27 Oct that more than $1bn in crypto linked to fraud had been restrained.
- Six defendants were charged over an alleged Madagascar scheme that drained wallets via fake NFT investment sites.
- The FBI identified about 74 wallets tied to roughly 800 US victims, with stolen funds allegedly reaching China-linked accounts.
The strike force, launched in November 2025, had reported over $580m in crypto freezes, seizures and forfeitures in its first three months. It has also seized 700 fraudulent investment websites and Telegram channels used by the schemes. Restraints block the use or transfer of assets while legal proceedings and possible victim compensation play out.
Participants allegedly posed as women seeking relationships and persuaded Americans to connect and fund their crypto wallets before draining them. FBI investigators linked about 74 wallets to roughly 800 US victims, and stolen funds allegedly reached accounts tied to China-based actors. Chui Kok Wa, described by prosecutors as the alleged leader, faces a wire fraud conspiracy charge.
Separately, Zheng Zhao was brought before a California court on 23 Oct after extradition from the Netherlands over an alleged Cambodian investment scheme with 174 identified US victims. Pirro is seeking the extradition of the six Madagascar defendants.
What to watch: Pirro has called for the extradition of the six defendants charged in the Madagascar case.
Live updates on NewsFeeds:AltcoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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