Trump: DOJ Freezes $1 Billion in Scam Crypto

President Donald Trump announced on October 21, 2026, that federal authorities have frozen nearly $1 billion in cryptocurrency linked to foreign scam operations.

Crypto Assets Frozen in Anti-Fraud Push

The precise figure, $938,460,156.82 in crypto, was disclosed by the Department of Justice’s Scam Center Strike Force as of October 15, 2026. President Trump revealed the seizure during a White House roundtable on cybercrime, characterizing it as a component of a broader offensive against online fraud.

Beyond the frozen assets, Trump stated that federal authorities have averted at least $1.6 billion in losses this year alone and have taken down more than 500 fraudulent websites. The Scam Center Strike Force reported that 503 illicit crypto investment sites have been seized or disrupted since its inception in November 2025. FBI Director Kash Patel added that 20 scam compounds have been dismantled.

Proactive Warnings Aim to Prevent Losses

The Strike Force has also implemented a proactive warning system, alerting individuals before their funds are stolen. More than 10,000 Americans identified as likely targets have received these warnings, with Patel citing an earlier figure of approximately 9,000. This early intervention strategy has yielded tangible results, preventing nearly $562 million in losses as of March 2026 through targeted alerts.

Focus on Southeast Asian Scam Networks

The value of restrained cryptocurrency has seen a steady increase throughout the year, surpassing $700 million by April 2026 and exceeding $800 million by July 2026. The operation primarily targets scam networks operating out of Southeast Asia, including Myanmar, Cambodia, Laos, and the Philippines. The prevalent schemes are investment scams, often referred to as “pig-butchering,” where perpetrators cultivate trust over weeks or months, sometimes through fabricated friendships or romances, before luring victims into fraudulent crypto investments and absconding with their money.

Strike Force Mandate and Executive Action

Established in November 2025, the Scam Center Strike Force was tasked with dismantling transnational fraud networks responsible for significant losses among U.S. investors. An executive order issued in March 2026 bolstered these efforts by prioritizing online scam prosecutions and mandating enhanced coordination among U.S. Attorneys’ Offices nationwide.

The FBI had previously reported $11.366 billion in crypto-related losses for 2025, with investment fraud accounting for a substantial portion. Officials have also highlighted increasing collaboration with cryptocurrency platforms such as Coinbase and Binance. No specific tokens or exchanges were named in connection with the frozen assets, and the government has not detailed the composition or location of the seized cryptocurrency.

The Path to Victim Restitution

For victims, the distinction between “restrained” and “returned” is crucial. While freezing cryptocurrency prevents its movement, the process of recovering and returning funds to victims is complex and time-consuming. Officials maintain that the ultimate objective is to repatriate funds to those who were defrauded, though confirming the actual return of assets remains a significant challenge.