New Delhi: The United States has uncovered a major financial trail linked to cryptocurrency and digital asset investment scams operated through overseas scam centers. The Financial Crimes Enforcement Network (FinCEN), the financial crimes unit of the US Treasury Department, has identified approximately ₹1.20 lakh crore in suspicious financial activity associated with digital asset investment fraud networks allegedly operating through scam centers abroad.
FinCEN analyzed 33,904 Bank Secrecy Act reports filed between September 2023 and December 2025. The reports recorded financial activity worth about ₹1.20 lakh crore linked to suspected digital asset investment scams. According to US authorities, a significant portion of these transactions was connected to criminal networks operating large-scale scam compounds in Southeast Asia.
The US Treasury Department said these networks are run by transnational criminal organizations that operate industrial-scale scam centers. These groups allegedly employ large numbers of people in different roles to create an organized fraud ecosystem. Criminals use fake identities and social engineering techniques to gain victims’ trust and persuade them to transfer money for supposed investments in digital assets.
Personal relationships are also frequently exploited. According to FinCEN, criminals may pose as potential romantic partners, new friends or business associates while establishing contact with victims. After building trust through prolonged conversations, they introduce the victims to purported investment opportunities. Victims are then directed to websites or mobile applications designed to resemble legitimate investment platforms.
US authorities have classified these schemes as digital asset investment fraud. They include methods commonly associated with “pig butchering”, romance-based scams and cryptocurrency investment fraud built around trust. In many cases, victims are initially shown apparently growing profits in their accounts, encouraging them to invest larger amounts. When they later attempt to withdraw their funds, scammers allegedly demand additional payments or create other obstacles, effectively blocking access to the money.
FinCEN has also identified the support infrastructure operating behind these scam networks. According to the agency, so-called “guarantee marketplaces” provide services that can help scam operators create online accounts, conduct phishing operations and facilitate money laundering. Such services allegedly allow scam-center operators to establish the financial and technical infrastructure required to run their operations at scale.
Professional money launderers also play an important role in the wider network. FinCEN said these individuals can help establish bank accounts and shell companies while moving proceeds from scams through multiple accounts and financial channels. Money mule networks and stablecoins are allegedly used to integrate illicit proceeds into the formal financial system. The funds can then be transferred to digital asset exchanges located outside the United States.
FinCEN said victims have been identified across all 50 US states and several US territories, with people from different age groups falling prey to these schemes. The agency warned that the actual financial impact could be substantially higher than the reported figures because many victims do not report fraud or may not disclose the full amount they lost.
The US financial crimes agency has also issued a separate alert for banks and other financial institutions, outlining indicators that could help identify suspicious transactions associated with overseas scam centers. The objective is to detect and disrupt the movement of fraudulent proceeds before the money can be transferred further through the financial system.
US officials have described digital asset investment fraud as one of the most significant financial threats facing Americans. FinCEN’s findings come as international cryptocurrency fraud networks become increasingly organized, sophisticated and layered. The agency’s analysis indicates that effectively disrupting these operations will require more than arresting individual fraudsters. Authorities will also need to target the broader financial chain connecting fake identities, money laundering operations, money mule networks, shell companies, cryptocurrency transfers and scam centers operating overseas.
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About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
