The Federal Bureau of Investigation has carried out the largest cryptocurrency seizure operation in its history, confiscating digital assets worth over $8 billion and arresting around 300 individuals in various countries around the world.
This is reported by Business • Media
- As part of the international operation Operation Blackout, American law enforcement arrested hundreds of suspects linked to organized crime groups from Asia, the Middle East, and Africa.
- The investigation involved Starlink, which blocked thousands of terminals in Myanmar that were used to coordinate fraudulent schemes.
“The FBI links part of the operations to the ‘Karen National Liberation Army’ group operating in Myanmar. The organization is under U.S. sanctions and has previously been recognized as a transnational criminal organization.”
Uncovering Large-Scale Fraud Schemes
A key figure in the investigation is Chen Zhi, the CEO of Prince Holding Group from Cambodia. During his arrest, law enforcement confiscated over 127,000 BTC, and the total value of the seized assets at the time of the operation could exceed $15 billion.
The investigation found that criminal networks used complex fraudulent investment schemes, romantic scams, and blackmail aimed at stealing money from U.S. citizens. Part of the activities is linked to the notorious ‘Karen National Liberation Army’ group, which is already under U.S. sanctions for organizing transnational criminal activities.
The FBI estimated that in 2025, Americans filed nearly 72,000 complaints regarding cryptocurrency investment fraud, with total reported losses exceeding $7.5 billion.
Special Operations in Multiple Countries and Starlink’s Involvement
An important feature of this operation was the FBI’s collaboration with Starlink. Elon Musk’s company received data from law enforcement about the terminals used by criminals for communication and coordination, after which over 7,000 Starlink terminals were disabled in Myanmar.
The international investigation covered several countries: in Dubai, police along with the FBI detained 275 individuals, six of whom will soon be extradited to the U.S. In Thailand, thousands of smartphones and equipment used to organize fraudulent schemes were seized.
Rescued victims of fraud centers. Data: Fox.
FBI Director Kash Patel reported that the special operation managed to dismantle numerous fraud centers and rescue approximately 2,000 people who had become victims of human trafficking.
Mobile phones seized from criminals. Data: Fox.
Results from the Level Up program were also highlighted, which allowed for the identification of potential victims of crypto fraud. The FBI notified 8,935 individuals, of whom over 75% were not even aware of their involvement in fraudulent schemes. This helped prevent additional losses amounting to approximately $562 million.
Previously, the FBI had also uncovered schemes supplying fentanyl to cartels using cryptocurrency.