Crypto: Washington freezes $700M linked to a Chinese network

Washington strikes hard against illicit crypto networks. US authorities have blocked 700 million dollars linked to a Chinese scam network in Southeast Asia. Meanwhile, Tether froze 344 million dollars in USDT on two Tron wallets that Washington links to Iran. Between fake investment sites, “pig butchering” scams, and sanctions evasion, the United States tightens the noose on suspicious digital flows.

US authorities block $700M in crypto and target a Chinese network

The US Department of Justice announced the blocking of 700 million dollars in crypto in a major crackdown on criminal networks active in Southeast Asia. These groups operated digital asset scam centers mainly targeting American victims.

In its press release, the department indicated that the actions of the task force for scam enforcement include criminal prosecutions against two Chinese nationals arrested in this case. Authorities accuse them of operating a crypto investment fraud network from Myanmar and attempting to establish another center in Cambodia.

Authorities reportedly used these structures to carry out “pig butchering” scams. The scammers gradually gained victims’ trust before encouraging them to invest in fake crypto platforms.

Authorities also seized 503 fake investment sites and controlled a Telegram channel linked to recruiting victims of human trafficking.

In the same context, the Treasury Department announced sanctions against operators of crypto scam centers in Cambodia. Meanwhile, the State Department announced rewards for any information leading to the seizure or recovery of funds linked to the Tai Chang scam center in Myanmar.

Tether freezes $344M in USDT linked to Iran

Furthermore, in the same context, Tether announced last Thursday that it froze 344 million dollars in USDT on two Tron wallets. The company took this action in coordination with the Office of Foreign Assets Control and US law enforcement agencies.

US authorities targeted addresses suspected of evading sanctions and serving criminal networks. According to Tether, this operation represents its most significant enforcement action to date.

The two wallets held approximately 212.9 million and 131.3 million dollars in crypto. Before the freeze, US authorities had shared intelligence linking these addresses to illegal activities. The blocking now prevents any transfers from the involved addresses. The funds therefore remain immobilized.

Additionally, a US executive official told CNN that the government had information linking this currency to Iran. He said blockchain transaction analysis identified multiple connections with Iranian actors:

Working with blockchain analytics experts, the US government has observed evidence of material links to the Iranian regime, including confirmed transactions with Iranian exchanges and a series of transactions routed through intermediary addresses that interact with the Central Bank of Iran-associated wallets.

Moreover, he explained that Iran’s Central Bank uses increasingly complex methods to mask its involvement in cross-border digital asset transactions. According to him, these mechanisms serve to support the rial and facilitate international trade despite an increasingly restrictive sanctions environment.

This offensive confirms that the crypto market remains under enhanced surveillance. Between fraud, money laundering, and sanctions, US authorities want to show they can track, block, and neutralize suspicious digital flows on a large scale.