ChainCatcher report: The United States and the United Kingdom have announced the formation of their first joint law enforcement alliance aimed at dismantling fraud hubs involved in cryptocurrency and online investment scams. The U.S. Department of Justice stated that the U.S. Attorney’s Office for the District of Columbia, the UK’s Crown Prosecution Service, and the UK’s National Crime Agency have signed a memorandum of understanding to conduct parallel investigations, share intelligence on organized crime groups, and coordinate jurisdictional prosecution decisions for specific cases. This alliance expands upon the “Fraud Hub Task Force” initiated in November 2025 by U.S. Attorney Jeanine Ferris Pirro, with a focus on Chinese organized crime networks primarily based in Southeast Asia that operate cryptocurrency investment scams, often linked to human trafficking and money laundering. The task force includes the FBI, U.S. Secret Service, IRS Criminal Investigation, Homeland Security Investigations, and DOJ offices, and collaborates with the U.S. Department of the Treasury, the State Department, and private sector partners to dismantle fraudulent operations and recover victim funds. The U.S. Department of Justice noted that losses reported due to cryptocurrency investment scams in the United States continue to rise sharply, with losses reported to the FBI’s Internet Crime Complaint Center increasing from $4.57 billion in 2023 to $8.65 billion in 2025. Previously, international law enforcement agencies conducted a joint operation; on April 29, Dubai Police, with participation from the FBI and China’s Ministry of Public Security, launched raids that resulted in the arrest of 276 individuals and the shutdown of at least nine cryptocurrency fraud hubs. Several Southeast Asian nations are also strengthening domestic legislation: On May 15, Myanmar’s military government released a draft bill proposing prison terms of 10 years to life for cryptocurrency fraud, with the death penalty applicable if victims die as a result of being coerced into working at fraud hubs; the bill was passed by parliament on July 28.
US and UK Establish Joint Task Force to Combat Crypto Fraud
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Summary
The U.S. and U.K. have launched a joint task force to combat crypto fraud, in alignment with CFT objectives. The alliance includes the DOJ, FBI, and UK agencies, sharing intelligence and coordinating investigations. The group expands the Fraud Center Task Force, targeting Chinese criminal networks in Southeast Asia. Crypto fraud losses in the U.S. reached $8.65 billion in 2025. Recent operations in Dubai and China resulted in the arrest of 276 suspects. Myanmar’s new law links digital currency fraud to severe penalties. The task force also collaborates with the Treasury and private firms to enhance liquidity and support crypto markets.
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