The FBI announced on May 29, 2026, the largest cryptocurrency seizure in U.S. history, confiscating over 127,000 bitcoins valued at approximately $8 billion as part of a global crackdown on organized scam compounds. The operation, called Operation Blackout, led to the arrest of hundreds of suspects across multiple countries, including the CEO of Cambodia’s Prince Holding Group, Chen Zhi, who faces federal charges of wire fraud and money laundering conspiracy. [1]
The investigation targeted the Democratic Karen Benevolent Army (DKBA), an armed militia from Myanmar designated as a transnational criminal organization by the U.S. Treasury. FBI Director Kash Patel stated that scam compounds are “organized criminal enterprises built to steal from Americans, launder money, and exploit people at scale.” The bureau dismantled nine such compounds in Dubai alone, each reportedly generating approximately $6 million annually in fraud proceeds. In Dubai, local police and the FBI arrested 275 individuals, six of whom will be extradited to the United States.
The operation also rescued nearly 2,000 trafficked workers who had been lured with promises of legitimate employment and then forced to conduct online scams under threat of violence. The FBI’s Internet Crime Complaint Center received nearly 72,000 complaints in 2025 related to cryptocurrency investment fraud, with reported losses exceeding $7.5 billion. An estimate from the United States Institute of Peace suggests criminal syndicates steal approximately $64 billion annually worldwide.
In a proactive measure called Operation Level Up, the FBI identified and notified 8,935 victims of cryptocurrency investment fraud, 77% of whom were unaware they were being scammed, preventing an estimated $562 million in additional losses. The FBI also partnered with Elon Musk’s Starlink, providing geolocation data that led to the suspension of more than 7,000 Starlink terminals used by scammers in Myanmar.