US-China ramps up crackdown on scam hubs, illegal gambling
The United States and China are intensifying their focus on crypto-linked fraud and illegal gambling networks operating across Southeast Asia, launching parallel enforcement drives that analysts say could reshape the region’s illicit-finance landscape.
Authorities in both countries have moved against alleged kingpins behind sprawling scam compounds, many of which operate along the border regions of Thailand, Myanmar, Laos, and Cambodia. These zones have, in recent years, become hubs for criminal syndicates that lure, and in some cases forcibly detain, victims for large-scale online fraud, illegal gambling operations, and crypto-investment scams.
Billions moving through crypto
Investigators say the networks rely heavily on cryptocurrency, funnelling funds through bitcoin, ether, and various stablecoins to mask their tracks. The US Department of Justice recently grabbed headlines after seizing $13.4 billion in bitcoin connected to Cambodian businessman Chen Zhi.
American officials are calling it one of the biggest digital-asset confiscations they’ve ever pulled off. According to prosecutors, the money traces back to groups operating forced-labour scam operations, though Chen’s company has pushed back hard against those claims.
On top of that seizure, the US rolled out a dedicated Scam Center Strike Force specifically targeting crypto-investment fraud. Analysts estimate this type of fraud drains Americans of close to $10 billion every year. TRM Labs, which tracks blockchain activity, calls the move a “landmark moment” and suggested it shows US enforcement is finally treating these networks as a serious priority.
Similarly, China has been ramping up similar operations. Beijing recently extradited She Zhijiang after a two-year legal fight in Thailand. He’s been on the radar for allegedly running illegal gambling and scam operations. Furthermore, Beijing has also been strengthening ties with law enforcement across different countries, going after people linked to telecom fraud and underground online casinos.
Chinese officials say coordinated action is now essential, with President Xi Jinping noting that Anti-money laundering efforts offer scope for collaboration with the US despite wider geopolitical tensions.
Parallel crackdowns, similar targets
While Washington and Beijing are acting independently, observers note striking similarities in their recent moves. Both countries have targeted large cross-border scam hubs; both have issued red notices or confiscated massive crypto holdings; and both have placed pressure on governments in Cambodia, Laos, and Myanmar to increase cooperation.
British authorities are also involved. Investigators in the UK previously seized 61,000 bitcoin linked to Chinese national Qian Zhimin, who is accused of running a major fraud operation from Southeast Asia. The case has since been used as a reference point by regulators studying the global flow of illicit digital assets.
“When the integrity of gaming markets and the protection of players are at stake, even global rivals can find common ground.”
– Stephen Crytsal, CEO and Founder, SCCG Management
However, industry analysts say the alignment in timing is unlikely to be accidental. In an exclusive comment to SiGMA News, Stephen Crystal, CEO and founder of SCCG Management, says these illegal networks now pose a direct threat to legitimate operators and regional stability, and so, such actions have been initiated.
In his initial remarks, Crystal said, “With scam and illegal-gambling networks in Myanmar, Cambodia, and Laos now generating nearly $39 billion a year, and with Americans losing close to $10 billion annually, the emerging US–China cooperation marks a pivotal moment for the global gaming ecosystem. These operations don’t just endanger consumers, they distort regulated markets and create unfair pressure on operators who follow the rules.”
He further added, “What stands out here is the recognition that no single jurisdiction can dismantle these syndicates alone. Coordinated financial pressure, from sanctions to shared intelligence and the tracing of illicit crypto flows, remains one of the most effective ways to cut off the liquidity that keeps these networks functioning.”
He also noted, “Beyond enforcement, this alignment sends a wider message: in a region where illegal gambling hubs have become intertwined with human trafficking and cyber-fraud risks, this cooperation could meaningfully shift the enforcement landscape and support a safer, more transparent industry.”
Although a long-term joint framework between Washington and Beijing remains unlikely, both nations appear increasingly aligned in their objectives. Their parallel actions may prompt Southeast Asian governments to strengthen cooperation, while providing regulators with additional momentum to trace illicit crypto flows. If maintained, these efforts could influence broader regional and global responses to scam compounds.
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