Prosecutors announced charges against six alleged scammers based out of Africa who targeted Americans with fake non-fungible token (NFT) investment scams by posing as women on dating websites, netting hundreds of victims.

According to an affidavit for the arrest of of the six people — Chui Kok Wa, Gislen Neukeu, Shamusa Ninsiima, Clement Mugiraneza, Merveille Mudacumura and Nicodemus Hingima Monyancha — the criminal group with connections to China and Malaysia opened a scam compound in Madagascar early last year.

“In the scheme, scammers posed as beautiful women who met victims on dating websites, eventually enlisting them to connect their cryptocurrency wallets to fraudulent websites associated with the NFT investments,” the Justice Department said in a news release Tuesday. “Once connected, the scammers willed the victims to continue to fund their cryptocurrency wallets, and then surreptitiously pulled money from the victims’ wallets without their knowledge.”

The FBI identified approximately 74 cryptocurrency wallets associated with approximately 800 victims in the scheme, for an estimated loss of at least approximately $516,695, according to the affidavit and news release.

The U.S. District of Columbia’s Scam Center Task Force, the FBI’s field office in Honolulu and the U.S. Attorney’s Office for the District of Alaska made a trip to Madagascar in August to review electronic devices seized from scam compounds. Interviews with scam compound workers there revealed that Cambodian police activity and armed conflict between Thailand and Cambodia led to operations at a Cambodian scam compound being moved to Madagascar.

Phones for the alleged scheme leader, Wa, contained employment contracts and scripts for what scammers should say to victims, which said they would be committing “an emotional scam.” The devices that officials reviewed and the interviews also established further connections between the scammers and Southeast Asia and China.

After the initial interviews, though, Madagascar repatriated some suspects to China before the investigation was complete, according to the Justice Department.

“Today, [D.C.] U.S. Attorney Pirro called on the Madagascar government to cooperate with the United States, extradite the six charged defendants, and further noted that the government had obtained a material witness warrant to interview 15 employees of the scheme, who claimed they were human trafficked and abused by Wa, but are believed to be held in jail in Madagascar,” the release stated.

In the same release, DOJ said that the Scam Center Strike Force had crossed the $1 billion threshold in cryptocurrency recovered in its first year. 

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A 44-year-old Chinese national was extradited to the United States and arraigned in federal court for his alleged involvement in a sweeping investment scam network that tricked at least 174 U.S. residents out of nearly $37 million, the Justice Department said Friday. 

Zheng Zhao was extradited from the Netherlands to the United States to face a conspiracy to commit money laundering charge that could keep him in prison for 20 years. 

Prosecutors accuse Zhao and his co-conspirators of operating a global cryptocurrency investment scheme out of multiple countries, including scam centers in Cambodia. 

The cybercrime ring allegedly reached out to U.S.-based victims proactively via social media, phone calls, text messages and online dating sites to establish a deceitful relationship and build trust. Eventually, Zhao and his co-conspirators promoted cryptocurrency investments to the victims and directed them to send funds through fake sites that resembled legitimate trading platforms.

Victims were told their investments were growing in value, yet they were already transferred from U.S. bank accounts controlled by the co-conspirators to an account at Deltec Bank in the Bahamas, officials said. The crew allegedly converted the victim funds to Tether before transferring the assets to a digital wallet controlled in Cambodia.

The stolen funds were ultimately distributed to leaders of scam networks throughout the region, officials said.

Eight of Zhao’s co-conspirators previously pleaded guilty participating in the investment scam conspiracy, including Shengsheng He and Jingliang Su, who were sentenced to 51 months and 46 months in prison, respectively. 

Joseph Wong, a co-conspirator living in California, managed a network of money launderers in Los Angeles who registered shell companies, opened U.S. bank accounts and transferred stolen victim funds to international bank accounts.

“This case should serve as a warning to scammers in every corner of the world: there is nowhere to hide,” Todd Bratz, special agent in charge of the U.S. Secret Service Criminal Investigation Division, said in a statement. “Secret Service investigators and our law enforcement partners remain unwavering in their commitment to identify those who operate scam centers, disrupt their financial infrastructure and bring them to justice.”

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Senators from both parties Thursday probed Trump administration officials about whether federal agencies and foreign governments are coordinated enough in the battle against scammers, something witnesses told the Foreign Relations Committee they were working to remedy.

At least 13 federal agencies have authorities to counter scams, raising questions about whether someone needs to be in charge of all those efforts. And while there was some bipartisan sentiment at Thursday’s hearing that the Trump administration has taken good actions to battle scammers, both lawmakers and administration officials said that scam operations have demonstrated that cracking down on them in one place often just leads to them going elsewhere.

Sen. Pete Ricketts, R-Neb., compared the situation to an international initiative that gained prominence in the 1990s to counter drug trafficking, Joint Interagency Task Force South.

“Given that today’s scam centers are similarly transnational, combining cybercrime, human trafficking, money laundering and cryptocurrency, has the threat reached the point that we should establish a comparable multinational coordination mechanism?” he asked.

Sen. Jeanne Shaheen, D-N.H., focused on federal coordination: She paraphrased a former federal official who said, “there is nobody that is heading that effort up across agencies. We need to treat this like combat, and so we need somebody in charge.”

Shaheen, the top Democrat on the panel, is a co-sponsor of the bipartisan Scam Compound Accountability and Mobilization (SCAM) Act, which seeks to unify federal efforts on the subject.

A State Department official told Shaeen scammers were a national security priority for President Donald Trump, and that his executive order on the topic sought to tackle coordination.

“I do understand that this is a whole-of-government approach, and many agencies are focused on this,” said David Bedard, deputy assistant secretary at State’s Bureau of International Narcotics and Law Enforcement Affairs “The Action plan that was directed by the president is currently in the interagency review process to deconflict some of the concerns that you have raised. We certainly think the task force that will be implanted through the executive order will solve the problems you might be referencing.”

There’s also an international plan under the task force, he said. Currently, the administration shares intelligence on scammers with foreign allies, and Interpol has “productive” channels to work through there and is setting up its own task force, Bedard said, but there are concerns about other countries taking similar, duplicative action.

There have been signs of progress on the international front, Bedard and another State Department witness told the panel.

Michael DeSombre, assistant secretary at the Bureau of East Asian and Pacific Affairs, said Trump has raised the subject with Chinese President Xi Jinping, and that China has used its influence in Asia as its own citizens have become scam victims. Still, there’s been more progress in countries where the United States has stronger relations, such as Cambodia, than in those where ties aren’t as close, like Burma and Laos.

In Cambodia, one key has been pursuing scam center bosses first and foremost, Bedard said.

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