The U.S. Department of the Treasury’s Financial Crimes Enforcement Network released an analysis and alert identifying approximately $12.7 billion in financial activity tied to suspected digital asset investment scams. The findings draw from 33,904 Bank Secrecy Act reports filed by roughly 1,300 institutions between September 8, 2023, and December 31, 2025.

These operations, often called pig butchering, romance baiting or cryptocurrency confidence schemes, rely on fake identities and social engineering. Operators pose as romantic partners, friends or business contacts to build trust, then steer victims toward fraudulent investment platforms that display fabricated gains and pressure further transfers.

Operations Rooted in Southeast Asia

FinCEN stated that the scams are largely carried out by transnational criminal organizations based in Southeast Asia. These groups run industrial-scale compounds, primarily in Cambodia, Laos and Burma, that use large networks of participants to execute and profit from the schemes. United Nations estimates place the number of people working in such compounds in the hundreds of thousands, many recruited through false job offers and then confined.

Operators purchase supporting services through online guarantee marketplaces, including phishing tools, account creation and money-laundering assistance. Professional launderers set up shell companies and accounts, recruit money mules and move proceeds into the formal financial system.

Reporting Patterns and Financial Flows

Money services businesses, predominantly crypto firms, submitted 55 percent of the reports and flagged $5.5 billion. Banks accounted for 41 percent of filings and identified $6.4 billion. Securities firms and other institutions reported the remaining $784.5 million.

Monthly filings rose by an average of 10.9 percent, while the dollar amounts increased by an average of 18 percent. In October 2023, institutions filed 590 reports covering $485.7 million. By December 2025 the figures had climbed to 2,482 reports totaling $833.5 million. FinCEN noted that part of the rise may stem from greater use of search terms introduced in its earlier alert and that the overall total can include double-counting from repeated transfers, attempted payments and filing errors. The $12.7 billion therefore represents reported suspicious activity rather than confirmed victim losses.

Scammers accepted at least 22 different digital assets, most commonly Ethereum, USDT and USDC. Blockchain analysis showed that funds were almost always converted into stablecoins, overwhelmingly USDT, before moving through decentralized finance protocols or exchanges located outside the United States. Collection addresses were frequently reused across multiple victims, a pattern that helped some institutions detect the activity.

Victim Impact Across the United States

Reports involved individuals in all 50 states and several U.S. territories. Elder exploitation appeared in about 25 percent of filings, closely matching the 24.4 percent share of the population aged 60 and older. FinCEN concluded that older adults were neither disproportionately targeted nor disproportionately affected within the dataset.

Victims often funded transfers from retirement accounts, home-equity lines of credit, second mortgages and personal loans. One case involved nearly $640,000 drawn from a retirement fund. Another individual lost more than $1 million over six months. FinCEN also noted the psychological consequences, stating that some victims face elevated risk of self-harm after discovering the fraud and directing those in crisis to the 988 Suicide and Crisis Lifeline.

Regulatory Response and Guidance

FinCEN issued an alert that lists red flags for institutions and urges continued vigilance. The agency encourages voluntary information sharing under Section 314(b) of the USA PATRIOT Act and asks filers to include the key term “FIN-2026-SCAMCENTERS” in related reports. Bank Secrecy Act data supports law-enforcement investigations and recovery efforts.

Through its Rapid Response Program, FinCEN has interdicted $1.8 billion since 2015 and recovered just over $1 billion for 5,790 U.S. victims by sharing intelligence with foreign counterparts. The analysis and alert align with a March 2026 White House executive order focused on protecting Americans from cybercrime, fraud and predatory schemes.

Lawmakers in affected countries have advanced measures targeting the compounds. Myanmar’s parliament approved legislation that can impose life sentences for operators who use violence or detention to force participation. Cambodian lawmakers proposed similar penalties earlier in the year.

Victims are advised to contact their financial institutions immediately and report incidents to the FBI’s Internet Crime Complaint Center or the nearest U.S. Secret Service field office.