U.S. Court Targets Offshore Crypto Operations With 20-Year Sentence Tied to $73 Million Investment Scheme and Global Laundering Routes

A U.S. federal court has handed down a 20-year prison sentence in absentia to a central operator in a large-scale cryptocurrency investment fraud, underscoring Washington’s intensified focus on transnational scam networks, crypto-enabled money laundering, and offshore scam centre operations. Prosecutors confirmed the scheme laundered more than $73 million through shell companies, U.S. bank accounts, and cryptocurrency conversion channels, with victims targeted via social media, messaging apps, and spoofed investment platforms designed to mimic legitimate crypto trading services.

Court records show the operation relied on layered financial infrastructure: U.S.-registered shell entities were used to receive wire transfers, funds were rapidly converted into virtual assets, and transaction flows were actively monitored to evade detection. The laundering structure mirrors patterns previously identified in BrokersView’s investigations into crypto-based investment fraud using spoofed trading platforms Law enforcement confirmed that scam proceeds were routed through multiple jurisdictions before being consolidated under accounts controlled by the core conspirators.

Scam infrastructure and laundering mechanics

Investigators detailed how victims were groomed through unsolicited contact, including fake customer service interactions and relationship-building tactics, before being directed to cloned trading websites. These tactics align with BrokersView’s earlier reporting on “pig-butchering” style investment scams operating through encrypted messaging apps. Once funds were deposited, victims were shown fabricated account balances, while withdrawals were either delayed or blocked entirely.

Enforcement coordination and asset tracing

The case was led by the U.S. Secret Service’s Global Investigative Operations Center, with support from Homeland Security Investigations, Customs and Border Protection, and international law enforcement partners. Authorities confirmed ongoing efforts to trace and seize crypto assets linked to the scheme.

Broader crackdown on scam centres

Federal prosecutors stated the sentencing forms part of a wider strategy to disrupt scam centres operating overseas while targeting their financial pipelines. Further arrests and forfeiture actions remain under active investigation.