House Homeland Security Panel Opens Hearing on Crypto Fraud and Digital Extortion by Transnational Criminal Networks

cryptonews05:59

The most urgent crypto scam news on Capitol Hill arrived Tuesday as the House Homeland Security Committee held a joint subcommittee hearing on how transnational criminal organizations use crypto fraud...

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class=\"meta\">\n\n\n2026-04-22 05:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/crypto-scam-news-house-panel-probes-16-6b-fraud/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The most urgent crypto scam news on Capitol Hill arrived Tuesday as the House Homeland Security Committee held a joint subcommittee hearing on how transnational criminal organizations use crypto fraud...</p>\n\n<a href=\"https://crypto.news/crypto-scam-news-house-panel-probes-16-6b-fraud/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BITQ","symbol_name":"Bitwise Crypto Industry Innovators ETF","start_time":0,"source_url":"https://crypto.news/crypto-scam-news-house-panel-probes-16-6b-fraud/","article_id":"2629906516","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/crypto-scam-news-house-panel-probes-16-6b-fraud/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2629906516","pubTimestamp":1776808740,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"The most urgent crypto scam news on Capitol Hill arrived Tuesday as the House Homeland Security Committee held a joint subcommittee hearing on how transnational criminal organizations use crypto fraud, online scams, and digital extortion to steal from Americans.The Huione Group, a Cambodia-based conglomerate designated by FinCEN as a primary money laundering concern, received over $39.6 billion in 2025, functioning as core financial infrastructure for scam networks.Crypto scam news reached Congress Tuesday morning as the Subcommittees on Border Security and Enforcement and Cybersecurity and Infrastructure Protection convened in Room 310 of the Cannon House Office Building for a joint hearing titled “Online Scams, Crypto Fraud, and Digital Extortion: An Examination of How Transnational Criminal Networks Target Americans.”The pig butchering model is the dominant scheme: scammers build trust with victims over weeks or months through fake relationships before directing them to fraudulent c","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"BITQ":"Bitwise Crypto Industry Innovators ETF","BITW":"Bitwise 10 Crypto Index ETF","GDLC":"Grayscale CoinDesk Crypto 5 ETF","DIME":"CoinShares Altcoins ETF","STCE":"Schwab Crypto Thematic ETF","DAPP":"VanEck Digital Transformation ETF","LFGY":"YieldMax Crypto Industry and Tech Portfolio Option Income ETF","BKCH":"AdvisorShares Sabretooth ETF"},"translate_title":"众议院国土安全小组就跨国犯罪网络的加密货币欺诈和数字勒索举行听证会","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GDLC":0.9,"BITQ":0.9,"BITW":0.9,"LFGY":0.9,"STCE":0.9,"DAPP":0.9,"DIME":0.9,"BKCH":0.9},"content_text":"The most urgent crypto scam news on Capitol Hill arrived Tuesday as the House Homeland Security Committee held a joint subcommittee hearing on how transnational criminal organizations use crypto fraud, online scams, and digital extortion to steal from Americans.\n\n\nSummary\n\n\n\nThe FBI’s 2024 Internet Crime Complaint Center report documented $16.6 billion in total scam losses, with crypto investment fraud alone accounting for $5.8 billion.\nThe Huione Group, a Cambodia-based conglomerate designated by FinCEN as a primary money laundering concern, received over $39.6 billion in 2025, functioning as core financial infrastructure for scam networks.\nUS authorities seized more than $15 billion in illicit proceeds tied to scam activity in 2025 and sanctioned 146 Prince Group targets in October, marking some of the largest enforcement actions in crypto history.\n\n\n\nCrypto scam news reached Congress Tuesday morning as the Subcommittees on Border Security and Enforcement and Cybersecurity and Infrastructure Protection convened in Room 310 of the Cannon House Office Building for a joint hearing titled “Online Scams, Crypto Fraud, and Digital Extortion: An Examination of How Transnational Criminal Networks Target Americans.”\nCynthia Kaiser, senior vice president of the Halcyon Ransomware Research Center, testified as a witness, providing technical context on how criminal networks use digital extortion tools alongside crypto investment fraud schemes to maximize victim losses and minimize traceability.\nThe hearing draws on a documented surge in transnational criminal activity. The FBI’s IC3 report recorded 859,532 scam complaints in 2024 with $16.6 billion in losses. Investment fraud, predominantly pig butchering schemes operated from Southeast Asia, caused $5.8 billion of that total. Victims aged 60 and older bore the highest losses of any age group.\nThe Scale of the Criminal Infrastructure Being Examined\nThe networks at the center of the hearing are not loosely organized. They are industrial operations with real estate, corporate structures, and international banking relationships. The Chainalysis 2026 Crypto Crime Report documented that the Huione Group received $39.6 billion in transactions in 2025 alone after FinCEN designated it a primary money laundering concern under the USA PATRIOT Act. Prince Group, a Cambodia-based transnational criminal organization operating forced labor scam compounds, was sanctioned by OFAC in October 2025 with 146 targets designated across the network.\nThe pig butchering model is the dominant scheme: scammers build trust with victims over weeks or months through fake relationships before directing them to fraudulent crypto investment platforms. Once funds are deposited, the platforms close. Proceeds move through shell companies, crypto wallets, and professional money laundering networks based in Southeast Asia before being converted or consolidated. TRM Labs found that these networks have become more professionalized each year, with AI tools now reducing the time required to build trust with victims.\nWhat Enforcement Has Achieved and What Remains\nUS authorities have escalated enforcement significantly. They crypto seized over $61 million in Tether tied to pig butchering in North Carolina alone, and the October 2025 Prince Group seizure involving approximately 127,271 Bitcoin was described as the largest financial forfeiture in American history at the time. Total illicit proceeds seized or forfeited in 2025 linked to scam activity exceeded $15 billion according to Chainalysis.\nThe persistent structural challenge is jurisdiction. The criminal networks operate from countries with weak law enforcement cooperation agreements. Victims move funds through US-based crypto exchanges before the money reaches overseas wallets, making the domestic on-ramp the most accessible intervention point. Congress is considering legislation including the Dismantle Foreign Scam Syndicates Act, which would establish an interagency task force and authorize targeted sanctions against compound operators and their financial intermediaries.\nWhat the Hearing Signals for Crypto Regulation\nThe hearing is notable for what it does not do: it does not frame crypto itself as the problem. The focus is on transnational criminal organizations exploiting the technology. That framing matters for the regulatory environment around the CLARITY Act and stablecoin legislation, where the industry has argued that clear rules reduce illicit use by creating regulated on-ramps with strong compliance requirements. A Congress that treats crypto as a tool of crime will write different legislation than one that treats it as infrastructure being exploited by criminals who would otherwise use other payment rails.\n\n\n\n\n\n                Read more:\n            \n\n                Aave’s WETH unfreeze hands leverage to whales and illiquidity to everyone else","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.0","shortVersion":"4.42.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2629906516","isCrawlerRequest":true}