By PAUL O’DONOGHUE, Senior Correspondent
US authorities have seized more than $8 billion in Bitcoin and arrested hundreds of suspects as part of ‘Operation Blackout’, a multinational crackdown on scam compounds.
The operation, known as Operation Blackout, targeted networks accused of stealing billions of dollars from victims worldwide, including Americans who fell victim to investment and romance scams.
The FBI said it confiscated more than 127,000 bitcoin from Chen Zhi, chief executive of Cambodia-based Prince Holding Group. Officials described the seizure as the largest forfeiture in U.S. government history. The crypto is currently worth more than $8 billion, although authorities said its value may have exceeded $15 billion when agents seized it.
Among the groups targeted was the Democratic Karen Benevolent Army (DKBA), an armed militia operating in Myanmar. U.S. authorities have designated the group a transnational criminal organisation and linked it to large-scale scam operations with alleged ties to Chinese organised crime.
Authorities also dismantled scam compounds across Asia, Africa and the Middle East.
Kash Patel, the FBI’s Director, said: “Scam compounds are not just call centers. They are organized criminal enterprises built to steal from Americans, launder money, and exploit people at scale.
“The FBI has been leading the charge, from taking down Prince Group in Cambodia to Operation Sand Dollar in Dubai. We helped free nearly 2,000 trafficked workers, shut down more than $8 billion in scam center fraud, and arrested nearly 300 people.
“If you target Americans, we will find you, disrupt your network, and bring every available tool of the federal government down on you.”
‘Operation Blackout’
In Dubai, local police and the FBI arrested 275 people, six of whom will face extradition to the United States. Authorities said nine scam compounds raided there each generated about $6 million a year in fraud proceeds.
Prosecutors have charged Chen Zhi with wire fraud and conspiracy to commit money laundering.
The FBI said some scam compounds relied on trafficked workers. Criminal groups allegedly lured people with promises of jobs and visas before forcing them to carry out scams under threats of violence.
The bureau also partnered with Starlink, Elon Musk’s satellite business, to identify fraudsters using satellite internet terminals. As part of the effort, Starlink suspended more than 7,000 terminals in Myanmar.
Operation Blackout followed a surge in complaints received by the FBI’s Internet Crime Complaint Center (IC3). In 2025, IC3 received nearly 72,000 reports of crypto investment fraud involving more than $7.5 billion in losses.
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