DOJ Restrained $938 Million in Cryptocurrency Scam Funds
Federal authorities targeted illicit networks linked to massive digital investment fraud operations.
Updated on Sept. 22, 2026 in Financial Crime
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The U.S. Department of Justice has restrained $938 million in cryptocurrency tied to international scam-center networks. The operation includes the designation of the Telegram-based marketplace Xinbi as a significant transnational criminal organization.
Why it matters
The Scam Center Strike Force aims to disrupt systemic financial fraud and expedite the return of stolen assets to victims. This enforcement action highlights federal efforts to dismantle illicit digital-asset networks that move billions in fraudulent proceeds.
Federal prosecutors have filed five civil forfeiture complaints to resolve property claims and return funds. Officials have already returned $470,735 to two victims in Maine.
The players
Department of Justice
This federal executive department is responsible for the enforcement of federal laws and the administration of justice in the United States.
Financial Crimes Enforcement Network
This bureau of the U.S. Treasury Department collects and analyzes information about financial transactions to combat domestic and international money laundering.
Xinbi
This Telegram-based marketplace was designated by the U.S. Treasury as a significant transnational criminal organization for facilitating large-scale financial fraud.
Scam Center Strike Force
This task force was established in November 2025 to track illicit cryptocurrency flows and recover assets for victims of digital investment scams.
The details
Investigators use civil forfeiture to trace payments through commingled funds and intermediary wallets to recover stolen property. The Scam Center Strike Force successfully restrained $52 million in a single day and seized approximately $12 million from two specific Xinbi wallets.
Timeline
The Scam Center Strike Force launched in November 2025.
On March 13, 2026, the Justice Department returned $470,735 to two Maine victims.
In July 2026, the U.S. Attorney filed five civil forfeiture complaints.
On September 9, 2026, officials announced the $938 million restraint.
Market Landscape
The reliance on Bank Secrecy Act reports to track $12.7 billion in suspicious activity follows a standard federal regulatory framework for monitoring financial crime. This systemic oversight positions the government to better compete against decentralized criminal organizations operating on platforms like Telegram.
Victims of similar investment scams may see improved recovery timelines as the Strike Force resolves civil property claims. Residents are advised that federal authorities are increasingly targeting marketplaces that facilitate digital fraud to enhance overall financial security.
The takeaway
Authorities are increasingly using civil forfeiture to claw back assets from complex international criminal networks. Keeping personal investment funds secure requires vigilance against platforms that lack regulatory oversight and promise high returns.
Further reading
For more information on current federal investigations, visit the Financial Crime section.
Source note: This article includes information reported by International Business Times UK.
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