The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Treasury Department focused on combating illicit financial activity, has attributed approximately $12.7 billion in suspicious transactions to cryptocurrency investment scams operating out of Southeast Asian compounds. FinCEN published its analysis alongside a formal alert, examining trends from September 2023 through December 2025.
Key Findings from Suspicious Activity Reports
FinCEN reviewed 33,904 suspicious activity reports (SARs), submitted by around 1,300 financial institutions over the period studied. Crypto-focused money services businesses submitted the majority of reports—accounting for 55%—and flagged transactions totaling $5.5 billion. Banks, while filing fewer cases, reported the highest aggregate suspicious amounts, at $6.4 billion. Securities firms contributed reports of $784.5 million.
Filings increased at an average rate of 10.9% per month, with reported transaction amounts growing by 18%. Monthly filings rose from 590 reports totaling $485.7 million in October 2023 to 2,482 reports worth $833.5 million in December 2025.
FinCEN noted that part of this increase may reflect broader use of the relevant search term after its 2023 alert. The agency also cautioned that double-counting—of attempted transactions, repeated transfers, or errors by filers—could have inflated some totals.
| Institution | Reports (%) | Reported Value |
|---|---|---|
| Crypto Money Services | 55% | $5.5 billion |
| Banks | 41% | $6.4 billion |
| Securities Firms | n/a | $784.5 million |
How Scams Operate and Asset Flows
Analysis revealed that scams involved at least 22 digital assets, with Ethereum, USDT, and USDC appearing most frequently. Although victims bought various digital currencies, proceeds were almost always converted into stablecoins, primarily USDT, before being moved through decentralized finance protocols or non-U.S. exchanges. Blockchain analytics showed scammers often reused the same crypto addresses to collect funds from multiple victims, making detection possible for some firms.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPLMini dictionary: USDT (Tether), USDC—both are stablecoins pegged to the US dollar, designed to maintain a consistent value and used frequently in cryptocurrency trading to facilitate transactions or move funds across platforms.
While some believe that older Americans are at greater risk, FinCEN found elder exploitation was reported in about 25% of cases, which aligns with the fact that Americans aged 60 and over make up 24.4% of the population. This suggests that older adults are not targeted disproportionately. The FBI reported $4.8 billion in fraud losses among Americans over 60 for 2024. The GUARD Act, introduced in the Senate, would provide resources for blockchain tracing for local law enforcement. Reports indicate victims spanned all 50 states.
Impact on Victims
Victims often financed their losses using retirement savings, home equity lines, mortgages, or personal loans. Cases included a woman transferring nearly $640,000 from her retirement account and another individual losing more than $1 million over a six-month period.
FinCEN dedicated a section of its report to the risk of self-harm following financial loss, stating that victims who become aware of being defrauded may experience an acute mental health crisis, and referenced the 988 Suicide and Crisis Lifeline as a support resource.
Interpol Recognizes Emerging Global Criminal Threat
The International Criminal Police Organization, widely known as Interpol, has formally classified these crypto-related fraud compounds as a transnational criminal threat. During its General Assembly in Marrakech, Interpol highlighted how the network’s operations rely on human trafficking and online deception schemes.
According to Interpol, most compounds are situated in Cambodia, Laos, and Burma, and are often staffed by hundreds of thousands of people—many trafficked into the region under false employment promises. U.S. authorities have seized over $25 million linked to these schemes in the current year. The scam model, initially rooted in Southeast Asia, is reportedly spreading globally, prompting heightened international cooperation.
FinCEN reported that, since 2015, its Rapid Response Program has intercepted $1.8 billion and helped recover just over $1 billion for nearly 5,800 U.S. victims.
