US and UK Form First International Crypto Fraud Task Force to Dismantle Scam Networks

Historic Cross-Border Law Enforcement Agreement

The United States and United Kingdom have established a groundbreaking law enforcement alliance focused on dismantling cryptocurrency and cyber-enabled investment fraud operations. According to the US Department of Justice, the US Attorney’s Office for the District of Columbia, England and Wales’s Crown Prosecution Service, and the UK’s National Crime Agency have formalized their partnership through a memorandum of understanding that the DOJ characterized as unprecedented in scope and coordination.

Under this framework, law enforcement agencies from both nations will conduct parallel investigations targeting the same criminal enterprises, exchange critical intelligence on organized crime syndicates, and coordinate decisions on prosecution jurisdiction. The partnership has already identified overlapping cases, and authorities are organizing an in-person disruption operation scheduled for early October in London that will involve collaboration with private-sector partners.

Surging Crypto Fraud Losses Drive Urgent Action

The alliance responds to an accelerating crisis in investment fraud losses. According to the DOJ, reported US losses from crypto-related investment schemes surged 89% between 2023 and 2025, climbing from $4.57 billion to $8.65 billion, according to data filed with the FBI’s Internet Crime Complaint Center.

This expansion builds on the Scam Center Strike Force, an initiative launched in November 2025 by US Attorney Jeanine Ferris Pirro targeting Chinese organized crime networks operating massive scam centers primarily throughout Southeast Asia. These criminal operations orchestrate cryptocurrency investment fraud schemes while simultaneously perpetrating human trafficking and money laundering. The task force coordinates across the FBI, US Secret Service, IRS Criminal Investigation, Homeland Security Investigations, the Justice Department, along with support from the US Treasury and State departments and private industry partners to disable scam operations and recover victim assets.

Global Momentum Against Scam Infrastructure

The US-UK initiative reflects growing international coordination on scam center disruption. In April, the DOJ reported on a Dubai police-led operation involving the FBI and China’s Ministry of Public Security that resulted in 276 arrests and closed at least nine crypto scam centers. That operation charged six individuals in connection with schemes using fraudulent crypto investment platforms to deceive victims into depositing funds.

Southeast Asian governments are simultaneously enacting stricter domestic penalties. Myanmar’s military government drafted legislation in May proposing sentences between 10 years and life imprisonment for digital currency fraud offenses, with capital punishment possible when victims coerced into working at scam centers were killed. Parliament approved the bill on July 28, though presidential ratification remained pending.

The coordinated efforts across the US, UK, and beyond signal a strategic shift toward dismantling the infrastructure enabling transnational investment fraud that undermines trust in cryptocurrency markets and victimizes millions globally.

Source: US Department of Justice, via Cointelegraph. Not financial advice.