U.S. FinCEN Identifies Southeast Asian Scam Compounds Operating Approximately $12.7 Billion Crypto Investment Fraud

PANews, September 4 – According to Decrypt, the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury has issued an analysis and alert, linking approximately $12.7 billion in suspicious funds to crypto investment scams run by Southeast Asian "scam compounds." FinCEN statistics show that from September 2023 to December 2024, about 1,300 institutions filed 33,904 suspicious activity reports, with crypto-related money service businesses accounting for 55% and banks 41%, involving $5.5 billion and $6.4 billion respectively. The scams primarily use ETH, USDT, and USDC, with nearly all illicit proceeds converted into USDT before being laundered through DeFi protocols or overseas trading platforms. The report states that victims span all 50 U.S. states and all age groups, not limited to the elderly, and notes that some victims have exhibited self-harm risks due to massive losses. The scam compounds are mainly located in Cambodia, Laos, and Myanmar, often operating through human trafficking and fake job recruitment, with the model spreading beyond Southeast Asia. FinCEN's "Rapid Response Program" has intercepted $1.8 billion and recovered over $1 billion for 5,790 U.S. victims since 2015.