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The US Department of Justice (DOJ) has charged six individuals accused of operating an NFT investment scam from Madagascar that allegedly used fake romantic relationships to steal cryptocurrency from Americans.
In an October 27 DOJ release, the US Attorney’s Office for the District of Columbia said the case forms part of a broader investigation into transnational criminal organizations involved in cryptocurrency investment fraud and other online scams.
Investigators identified approximately 74 cryptocurrency wallets associated with around 800 victims across the United States who reported losses after interacting with fraudulent investment platforms. According to the DOJ, the stolen funds were transferred to cryptocurrency accounts associated with China-based actors.
The announcement also outlined the Scam Center Strike Force’s wider enforcement results, including more than $1 billion in cryptocurrency restrained and 700 fraudulent investment websites seized. These figures cover the task force’s broader investigations and are not specific to the Madagascar case.
According to an affidavit supporting the arrests, a criminal group with connections to China and Malaysia established scam compounds in Madagascar in early 2025. Investigators believe the operations may have relocated from Cambodia following law enforcement action there.
The alleged scheme involved scammers posing as women on dating websites and building relationships with potential victims. They then persuaded victims to connect their cryptocurrency wallets to websites presented as NFT investment platforms and deposit funds. The scammers allegedly withdrew cryptocurrency without the victims’ knowledge.
The DOJ said investigators found scripts and employment documents on the phone of Chui Kok Wa, who was charged with conspiracy to commit wire fraud and identified as the alleged leader of the scheme.
One script reportedly described the operation as an “emotional scam.” The documents also included work schedules, salary information, and bonuses linked to the amount of money stolen.
The charges are allegations. The defendants are presumed innocent unless proven guilty in court.
In an October 27 post on X, blockchain analytics firm Chainalysis said it had assisted the DOJ’s Scam Center Strike Force in investigations into cryptocurrency investment fraud, including the alleged Madagascar operation.
Chainalysis shared a transaction-tracking chart detailing how one victim reportedly lost more than $30,000. According to the company, the victim believed inftvault.com was a legitimate NFT investment platform. Prosecutors reportedly said the website had been seized.
The victim connected a cryptocurrency wallet to the site and signed a transaction that, according to Chainalysis, allowed the platform to drain funds from the wallet. The company said the cryptocurrency was subsequently sent to exchanges for cash out.
The DOJ announcement did not specify whether the transaction involved a token approval, a direct transfer, or another form of authorization. Chainalysis did not identify the victim.
The DOJ said the FBI sent a team to Madagascar in August 2026 at the invitation of the country’s Ministry of Justice and National Police. The operation assisted local authorities in dismantling 13 scam compounds and seizing more than 3,200 electronic devices.
According to the DOJ, efforts to interview people connected to the operations were hindered after the deployment. The announcement said Madagascar repatriated several suspects to China before the investigation was complete.
US Attorney Jeanine Ferris Pirro called on Madagascar to cooperate with the United States and extradite the six defendants. She also said the government had obtained a material witness warrant to interview 15 employees who reportedly claimed they had been trafficked and abused by Wa. The DOJ said those individuals were believed to be held in jail in Madagascar.
The announcement did not establish whether the extradition request would be granted.
The DOJ said the Scam Center Strike Force had restrained $1,006,460,156.82 in cryptocurrency linked to fraud and scams over the past year and seized 700 fraudulent cryptocurrency investment websites.
Other actions included taking down Starlink terminals used by scam centers to maintain internet access and seizing Telegram channels connected to recruitment for scam compounds and the Xinbi Guarantee Network. The DOJ described the network as an illicit marketplace offering websites and money-laundering services.
The Strike Force also reported working with foreign authorities and private companies to seize and examine tens of thousands of computers, servers, hard drives and mobile phones.
The DOJ said Meta reported removing 17.3 million scam accounts over the past year. It also cited voluntary assistance from companies including Tether, TRM, Elliptic, Chainalysis, Infoblox and Block6IQ in specific investigations.
These figures cover the Strike Force’s wider enforcement work, not just the Madagascar case.
The Madagascar charges follow other DOJ actions involving fake investment platforms, romance scams and the alleged laundering of stolen digital assets.
In a July 22 report, The Crypto Times covered the DOJ’s efforts to seize more than $25 million in cryptocurrency linked to five investigations. The cases involved fake investment platforms, romance scams, and fraudulent asset-recovery services targeting victims in the United States and Canada. Investigators traced funds through hundreds of wallet addresses allegedly used to conceal their origins. The proceedings were separate from the criminal charges in the Madagascar case.
On June 4, A joint operation involving the DOJ, Meta, Microsoft, Coinbase, and international law enforcement agencies targeted scam networks in Southeast Asia. The operation resulted in 63 arrests, the removal of more than 1.4 million online accounts and other assets, thousands of Starlink terminal disconnections, and more than $3 million in cryptocurrency frozen by Coinbase.
The June operation targeted scam networks and their supporting infrastructure, while the July cases focused on recovering cryptocurrency allegedly linked to fraud. The available reports do not establish a connection between those cases and the Madagascar investigation.
The DOJ said it plans to extend the Scam Center Strike Force’s reach to Africa, India, Europe, and other regions where criminal groups may establish operations.
“Operating from overseas does not place those who target Americans beyond the reach of U.S. law enforcement,” said Michael J. Heyman, US attorney for the District of Alaska. He said authorities would continue working with domestic and international partners to pursue those responsible.
FBI Criminal Division Assistant Director Heith Janke also warned criminal groups against assuming that moving their operations abroad would shield them from investigation. “These scam compounds don’t stop at borders — they target Americans’ vulnerabilities and hard-earned money,” Janke said.
The DOJ cited figures from the FBI’s Internet Crime Complaint Center showing that reported losses from cryptocurrency investment fraud rose from $4.57 billion in 2023 to $8.65 billion in 2025, an increase of approximately 89%.
The agency cautioned that reported losses likely understate the scale of the problem because many victims do not file complaints.
The DOJ also highlighted separate international cases involving alleged sextortion and phishing-kit operations, but did not link them to the Madagascar investigation.
The six defendants remain accused, and the charges have not been proven in court.
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