The U.S. Treasury Department’s Financial Crimes Enforcement Network has linked about $12.7 billion in financial activity to suspected cryptocurrency investment scams operated by overseas fraud networks.
The finding comes from a new analysis of 33,904 Bank Secrecy Act reports filed between September 2023 and December 2025. About 1,300 financial institutions contributed reports covering suspected digital asset investment scams.
Scam Networks Expand Their Reach
FinCEN said the schemes largely involve transnational criminal organizations operating from Southeast Asia. These groups often run large scam compounds where criminals use fake identities, romance tactics and fabricated investment platforms to gain victims’ trust.
The scams, often known as “pig butchering,” typically persuade victims to send cryptocurrency to fraudulent investment platforms. Criminals then move the proceeds through complex networks designed to conceal their origin.
FinCEN’s analysis found that reported scam activity increased sharply during the review period. The number of suspicious activity reports rose by an average of 10.9% each month, while reported financial activity increased by about 18% per month.
Stablecoins Become a Key Laundering Tool
Money services businesses, including cryptocurrency companies, submitted 55% of the reports and identified about $5.5 billion in suspicious activity. Banks submitted 41% and reported roughly $6.4 billion.
The agency also identified professional money launderers, shell companies and money mules as important parts of the criminal infrastructure. Stablecoin transfers can help operators move proceeds between jurisdictions and exchanges outside the United States.
FinCEN warned financial institutions to watch for transaction patterns associated with overseas scam centers. It also highlighted online marketplaces that sell services such as account creation, phishing and money laundering to criminal operators.
The scale of the reported activity underscores how rapidly cryptocurrency investment scams have evolved into organized, cross-border businesses. FinCEN’s findings also give banks, exchanges and other financial institutions new indicators for detecting suspicious transactions and disrupting fraud networks.
