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The FBI says Operation Blackout seized or froze more than $15 billion in assets and crypto tied to overseas scam compounds.
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The crackdown shut down over 500 fake investment sites and led to hundreds of arrests across more than 20 countries.
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Thousands of trafficked workers, forced to run scams from guarded compounds, have reportedly been freed.
The FBI says a global effort called Operation Blackout has hit a major scam network hard. The network ran fake investment schemes from compounds outside the U.S. Agents seized or froze more than $15 billion in assets and cryptocurrency. They also shut down over 500 scam websites and made hundreds of arrests. The operation also freed thousands of people who were reportedly trafficked into forced labor.
FBI Director Kash Patel shared these numbers in a post on September 21. He described the operation as a push to tear down the systems behind online investment scams aimed at Americans. Criminal groups allegedly ran their scams from guarded compounds overseas. Workers there were reportedly forced to trick victims across the United States.
Billions in Crypto Traced to One Scam Group
The $15 billion figure needs some background. U.S. prosecutors filed a civil case in October 2025. It targeted about 127,271 Bitcoin, worth roughly $15 billion at the time. Officials linked the crypto to the Cambodia-based Prince Group. The U.S. government now holds that cryptocurrency in custody.
The Justice Department accused Prince Group’s chairman, Chen Zhi, of running forced labor scam compounds in Cambodia. Workers there were allegedly held against their will. They were reportedly made to run cryptocurrency investment scams, often called “pig butchering” schemes (a term used when scammers slowly build trust before stealing money). Prosecutors charged Zhi with wire fraud and money laundering conspiracy. He has not been convicted, and the charges remain allegations for now, as detailed in the Department of Justice announcement.
FBI officials also gave testimony to the Senate Judiciary Committee in September 2026. According to that testimony, Operation Blackout is a worldwide campaign against major scam compounds and the networks behind them.
The bureau reported more than $15 billion in seized assets and over 300 arrests tied to the effort. In April, FBI agents worked with international partners to raid nine compounds. That operation spanned Dubai and China and seized thousands of devices, based on details shared by the Justice Department.
Thousands Freed from Forced Labor Compounds
The operation did not stop at money. It also focused on people trapped inside the scam compounds. FBI officials say thousands of trafficked workers have been rescued. Many were reportedly forced to run phones, fake accounts, and fraudulent investment platforms for their captors.
Victims of trafficking often arrive at these compounds after answering fake job ads. Once inside, they reportedly lose their passports and freedom. Guards then force them to message strangers online, building fake friendships or romances. Over time, these workers push victims toward bogus investment apps, which is how the scam earns its “pig butchering” nickname.
The international side of this effort keeps growing. Authorities are now working with law enforcement in more than 20 countries. In September, the Justice Department also announced a new partnership with the United Kingdom. That partnership aims to dismantle international scam centers tied to crypto and cyber-based investment fraud, according to a Justice Department release.
The FBI also says its work is stopping losses before they happen. Bureau figures suggest more than 10,000 Americans got warnings about suspected investment scams. Officials estimate this prevented over $500 million in potential losses.
A Growing Problem Behind the Crackdown
Online investment fraud remains a serious issue in the U.S. The FBI’s 2026 Internet Crime Report found that Americans reported more than $17.7 billion in cyber-enabled fraud losses in 2025. Investment fraud alone made up nearly half of all reported scam losses that year, per the FBI’s report.
The scale of the problem is also reflected in congressional scrutiny of China-linked scam networks. US Congress exposes China-linked scam empire stealing $10 billion from Americans every year examines how these networks have allegedly generated billions of dollars in losses from American victims.
This scale explains why Operation Blackout takes a different approach. Instead of chasing scammers after people lose money, investigators are going after the source. They are targeting the overseas compounds, the fake websites, the crypto networks, and the wider infrastructure that keeps these scams running.
Officials have not said whether more raids or arrests are planned. However, the pattern so far suggests this campaign is far from finished. New partnerships, like the one with the United Kingdom, point to a wider global push ahead.
Investigators say tracking cryptocurrency remains one of their strongest tools. Blockchain records leave a trail that agents can follow, even across borders. That trail reportedly helped agents trace the $15 billion in Bitcoin back to its source.
For now, the numbers stand as some of the largest ever reported in a single anti-scam operation. Billions in assets are frozen. Hundreds of people are behind bars. Thousands of trafficked workers are no longer trapped inside these compounds.
The case against Chen Zhi and the Prince Group is still moving through the courts. As with any ongoing legal case, the outcome has not been decided, and the allegations against him remain unproven in court.
Additional coverage on the operation’s scope has come from outlets including IBTimes UK, TVC News, and TUKO, which have each reported on the scale of the seizures and arrests tied to Operation Blackout.
