U.S. Treasury Cracks Down: 19 Entities Sanctioned in Major Crypto Scam Purge

Crypto's wild west just got a new sheriff—and they're not playing nice.

The Hammer Drops

Washington unleashed its regulatory firepower today, sanctioning nineteen operations tied to elaborate cryptocurrency fraud schemes. These aren't your grandma's email scams—we're talking sophisticated networks that siphoned millions from unsuspecting investors.

Cleaning House

The Treasury Department's move freezes assets and prohibits U.S. entities from transacting with the blacklisted firms. It's the financial equivalent of a digital scorched-earth policy—no warnings, no negotiations, just immediate enforcement.

Same Old Game, New Frontier

Scammers gonna scam—whether it's Ponzi schemes dressed in blockchain or pump-and-dumps wearing DeFi logos. Some things never change, even when the technology does. Maybe next they'll go after the 'legitimate' operations that crash portfolios faster than you can say 'market correction'.

Detailed Schemes Target American Investors

The sanctioned scammers employ various methods to recruit and force individuals to work for them. This includes hiring under false pretences and resorting to debt bondage, violence and sexual exploitation to force them to reach out to scam victims. 

One of the primary techniques that they use is “pig butchering”. It involves scammers contacting victims online to build a relationship with them. The scammers then convince the victims to make crypto investments into websites or apps they control. They even show them fabricated evidence to gain trust. The victim being convinced then makes the investment, but when they attempt to cash out, they are met with excuses or the scammers just disappear. 

Further, the department also found that scam operators specifically recruit individuals with good English language skills to target American victims. Former scammers also reported daily quotas for the number of targets.

The rising number of Southeast Asian crypto scams has prompted calls for enhanced industry collaboration with law enforcement. The new sanctions build on the U.S. government’s broader enforcement strategy for combatting crypto-related crime.

Also Read: SwissBorg Crypto Platform Loses $41M solana in Major Security Breach