Foreign cybercrime networks could face a U.S. program aimed at disrupting their operations, President Donald J. Trump announced on August 12 in a National Security Presidential Memorandum titled "Expanding Capabilities to Combat Transnational Cybercrime." According to a White House fact sheet, this policy targets ransomware, phishing, financial fraud, sextortion, and identity fraud schemes aimed at Americans.
Patrick Witt, Executive Director of the President's Council of Advisors on Digital Assets, linked this memorandum to measures combating cryptocurrency-related fraud. On August 12, he wrote on X:
"While not specifically targeting cryptocurrency, this action is a significant step toward curtailing the activities of scammers who use cryptocurrency to defraud Americans."
According to the full text of the presidential memorandum, vetted U.S. companies will be able to conduct cyber surveillance and cyber effects operations only after being accepted into the program. The National Coordination Center will manage the initiative, with officials appointed by the Department of Justice and the Department of Homeland Security serving as co-executive directors and coordinating the approval process.
Participating companies must sign contracts with one of these agencies, meet technical and personnel standards, and disclose information about related commercial agreements. Implementation guidance may also include providing a bond or deposit of at least $1 million, subject to forfeiture for contract non-compliance.
Why Loss Figures Place Cryptocurrencies in the Spotlight
The losses cited in complaints provide the most obvious financial rationale for this initiative, although these figures reflect the number of reports filed, not the full picture of harm. The FBI's 2025 Internet Crime Report recorded 1,008,597 complaints and losses of $20.877 billion, a 26% increase from 2024.
Cryptocurrencies accounted for 181,565 complaints and $11.37 billion in losses, representing over half of the IC3's total. Investment fraud involving cryptocurrency alone led to reported losses of $7.2 billion, making it the largest source of cryptocurrency investment fraud losses in 2025.
These aggregate figures do not mean every dollar disappeared via a blockchain transfer, as IC3 categories can cover multiple crime types or payments. However, they place digital assets at the forefront of federal attention concerning overseas fraud schemes and financially motivated cybercrime.
What Previous Enforcement Actions Show
Previous law enforcement actions illustrate the infrastructure underpinning the administration's new approach to transnational cybercrime networks based overseas. A coordinated June operation against the Huione Group and Prince Group involved sanctions, proposed expanded financial restrictions, cloud infrastructure seizures, and blockchain analytics targeting infrastructure that U.S. officials linked to overseas fraud groups.
International cooperation has already led to arrests, as well as server takedowns and asset seizures related to suspected overseas cryptocurrency fraud networks. According to U.S. officials, an April operation resulted in at least 276 arrests and the dismantling of at least nine alleged fraud centers. Authorities accused the schemes' organizers of directing victims to fraudulent cryptocurrency platforms.
These precedents differ from the August memorandum, which opens a permanent channel for private companies to propose and conduct federally approved missions. Previous cases relied on traditional law enforcement, sanctions, and cross-border cooperation; the new program will add contract corporate operators to that list.
The Role of Security and Consumer Protection Measures
During Operation Atlantic, public-private coordination helped identify victims. This week-long initiative identified over $45 million in cryptocurrency fraud, pinpointed over 20,000 cryptocurrency wallet addresses linked to victims in more than 30 countries including the U.S., U.K., and Canada, and froze $12 million in stolen funds.
Basic wallet safety precautions also reduce risk before any government operation begins, blocking common deception tactics at their source. Precautions against cryptocurrency fraud include verifying website URLs, distrusting unsolicited contacts, and avoiding promises to double deposited funds.
Program officials now have 60 days from August 12 to develop agreed-upon procedures, including selection criteria, target validation rules, and protections for U.S. citizens. No operation can be approved until these procedures meet constitutional, statutory, and international obligations.
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