Meta, Starlink and Microsoft team up with FBI to delete over 1.4 million accounts and seize millions in cryptocurrency linked to massive fraud networks targeting Americans

63 suspects arrested in multinational fraud takedown
Millions in cryptocurrency assets seized
Tech firms disabled millions of fraudulent accounts

Dozens of people have been arrested and millions of dollars in cryptocurrency seized in a large-scale, multinational operation against internet scammers and fraudsters.

On May 18, the US Department of Justice, the FBI, the Secret Service, law enforcement agencies in the UK, Australia, Canada, New Zealand and Thailand, as well as several commercial companies such as Meta, Coinbase and Starlink, participated in the takedown of a fraud network in Southeast Asia.

In a press release published earlier this week, Meta revealed the details of the operation, saying 63 suspects were arrested while Coinbase froze more than $3 million in cryptocurrency assets. At the same time, Meta disabled more than 1.4 million accounts, pages and groups from Facebook and Instagram, while Microsoft suspended around 20,000 fraudulent accounts linked to the fraud network.

Identification of several scams

Meta said the intelligence shared between these companies and agencies led to the identification of “many potentially new fraud centers and networks” that were referred to law enforcement. Starlink participated by disconnecting thousands of sets attributed to illegal use.

The announcement did not say what the nature of the scam was or whether the group had a name or any hierarchy. Scams involving cryptocurrency are usually romance or investment scams (or a combination). Users are enticed to “invest” in fraudulent platforms under the promise of huge financial gains. Romance scams work the same way, tricking victims into thinking they are “investing” with a future significant other.

Sometimes fraudsters engage in so-called scams that gradually cultivate relationships with victims before persuading them to transfer money to fraudulent cryptocurrency platforms. Even when victims realize they cannot withdraw, the scammers remain in character, posing as customer support and promising the victim the release of the funds if they pay a “tax” or “withdrawal fee”.