New Task Force Targets $10 Billion 'Pig Butchering' Crypto Scams: US Vows to Recover Stolen Funds.

The Dismantle Foreign Scam Syndicates Act is a direct response to the massive, sophisticated online crypto scams—often called “pig butchering”—that have cost Americans an estimated $10 billion in 2024 alone. This bill doesn’t just increase penalties; it mandates the creation of a powerful, interagency federal Task Force, chaired by the Secretary of State, with the sole purpose of shutting down the foreign criminal organizations running these operations. Within 180 days of enactment, this Task Force must deliver a comprehensive national strategy to Congress detailing exactly how the U.S. government will dismantle these scam centers, which are primarily based in Southeast Asia and rely heavily on forced human trafficking victims to operate (SEC. 4).

The Scam: Human Trafficking Meets Crypto Fraud

To understand this bill, you have to understand the problem. These scams work by building fake romantic or investment relationships online (the ‘pig butchering’ phase) before convincing the victim to invest large sums into phony cryptocurrency platforms. The bill finds that these operations are run out of compounds in countries like Burma, Laos, and Cambodia, often with the tacit approval or direct involvement of corrupt local officials (SEC. 2). Crucially, the people running the scams are themselves victims—hundreds of thousands of people trafficked and forced to meet high scam quotas under threat of violence. The policy is clear: the U.S. is making it a top priority to fight back against the transnational criminal groups behind this double threat of financial fraud and human exploitation (SEC. 3).

Sanctions and Cyber Tools: The New Strategy

The required strategy is aggressive and multi-faceted. It demands the U.S. pressure foreign governments that enable these scams and specifically investigate the role of the People's Republic of China in their proliferation (SEC. 5). The plan also includes training foreign police forces in digital forensics and money laundering to help them shut down centers locally. Perhaps the most pointed action is the immediate imposition of sanctions. Within 180 days, the President must review and impose sanctions on dozens of specifically named foreign individuals and entities—including high-profile figures and companies like the Prince Group and the White Sands Palace Casino—unless the President determines that waiving the sanctions is vital to U.S. national security (SEC. 7). This is a direct shot across the bow to those profiting from this criminal enterprise.

What This Means for Victims and the Taxpayer

For the American who lost their life savings to one of these sophisticated scams, the bill offers a glimmer of hope: the strategy must prioritize tracking down and recovering stolen funds (SEC. 5). For the victims of human trafficking forced to work in these compounds, the bill authorizes the Secretary of State to create new programs offering trauma-informed care, safe shelter, and reintegration support (SEC. 8). To fund this effort, the bill authorizes up to $30 million for the State Department over the next two fiscal years (FY 2026 and FY 2027) specifically for developing and carrying out this strategy (SEC. 9). This is a significant investment aimed at disrupting the entire infrastructure of these criminal networks, ensuring that the government has the resources to coordinate the FBI, Treasury, State, and other agencies effectively. The Task Force is required to report annually to Congress on its progress, including how much money was recovered and how many trafficking victims were rescued, ensuring accountability over the next seven years (SEC. 6).