FIRST ON FOX — The FBI has reported seizing an unprecedented $8 billion in cryptocurrency and has arrested hundreds of individuals, including members of a group called the Democratic Karen Benevolent Army, in a worldwide effort against “fraud compounds” and organized crime.
This group is believed to be linked to numerous thefts affecting Americans, including a case in which a single victim lost up to $3 million due to an online scam.
During these operations, the FBI confiscated over 127,000 bitcoins while detaining Chen Zhi, a CEO of a Cambodian firm named Prince Holding Group. The value of the seized bitcoins was more than $8 billion at the time, possibly exceeding $15 billion, marking it as the largest seizure of its kind in U.S. history.
The Democratic Karen Benevolent Army, an armed militia associated with a region in Myanmar, is suspected of having connections to Chinese organized crime and is presently under sanctions from the U.S. Treasury Department due to earlier fraudulent activities. The government has labeled it a transnational criminal organization.
Authorities have stated that many facilities across Asia, Africa, and the Middle East are believed to be tied to Chinese organized crime and specifically target Americans. Efforts to dismantle more of these operations are currently underway worldwide, as mentioned by FBI officials.
“The fraud complex isn’t just a call center. It’s a well-organized criminal operation aimed at stealing from Americans, laundering money, and exploiting individuals on a grand scale,” said FBI Director Kash Patel in a statement. He emphasized the commitment of the FBI to dismantle these networks and use all available resources to combat them.
In Thailand, the FBI gathered thousands of smartphones and office supplies during a recent operation.
Meanwhile, in Dubai, the FBI worked with local authorities to arrest 275 individuals, six of whom are set for extradition to the U.S. on federal charges. Each of the nine facilities targeted in this operation reportedly generated $6 million annually from fraudulent activities.
The Prince Group is believed to operate similar clandestine facilities globally, according to law enforcement sources.
Gee faces federal charges related to wire fraud and money laundering. Over the past year, the FBI has intensified efforts to tackle these groups.
One specific case, involving a victim of a romance scam, highlighted how different types of fraud can lead to devastating consequences, even linked to multiple suicides in some extortion cases.
The FBI has also noted that some criminal organizations exploit trafficking victims for labor, convincing individuals to commit fraud under threats of violence.
To combat these scams, the FBI has teamed up with Starlink, enabling the satellite company to help locate fraudsters using their devices. This collaboration has led to the shutdown of over 7,000 terminals in Myanmar.
These operations were prompted by numerous complaints the FBI received in 2025, leading to reports of losses exceeding $7.5 billion from cryptocurrency investment fraud. Authorities believe the actual figures may be much higher.
The U.S. Institute of Peace estimates that these criminal enterprises collectively siphon about $64 billion each year from various victims.
Operation Blackout includes a range of initiatives, including the investigation of the Prince Holding Group under Operation Zephyr Exodus and other operations targeting fraudulent setups run by organized crime throughout Asia, especially in the United Arab Emirates.
Additionally, Operation Hao Chiang focused on a fraudulent facility in Myanmar associated with Chinese criminal networks, where the FBI seized $30 million linked to various scams.
The destruction of the Shunda complex involved a collaborative task force that apprehended two suspects and seized a Telegram channel used to recruit labor for a scam.
Moreover, the FBI launched Operation Level Up, aimed at identifying cryptocurrency fraud victims and alerting them to the scams. So far, this effort has reached 8,935 victims, 77% of whom were unaware they had been defrauded. This outreach has helped prevent losses amounting to $562 million.
