The Treasury Department’s Financial Crimes Enforcement Network has tied roughly $12.7 billion in suspicious financial activity to crypto investment scams run out of Southeast Asian compounds, in an analysis and an alert published Thursday.

Some 1,300 institutions filed the 33,904 reports, covering September 2023 to December 2025. Money services businesses, mostly crypto firms, filed 55% and flagged $5.5 billion. Banks filed 41% and flagged $6.4 billion. Securities firms made up the rest, at $784.5 million.

Filings grew by an average of 10.9% a month and reported sums by 18%, from 590 reports worth $485.7 million in October 2023 to 2,482 worth $833.5 million in December 2025. FinCEN cautions that the climb may partly reflect wider adoption of the search term from its 2023 alert, and that the totals can double-count transfers, attempted payments and filer errors.

Scammers used at least 22 different digital assets, most often Ethereum, USDT and USDC, and rarely bothered with invented tokens. Whatever the victim originally bought, blockchain analysis showed proceeds were nearly always swapped into stablecoins and almost exclusively into USDT, then pushed through DeFi protocols or exchanges outside the U.S. Scammers also reused collection addresses across multiple victims at once, which is how some firms spotted the pattern.

Elder exploitation appeared in about 25% of reports, against the 24.4% share of the population aged 60 and over, leading FinCEN to conclude older adults are neither disproportionately victimized nor disproportionately robbed. The FBI counted $4.8 billion in fraud losses among Americans over 60 in 2024, a figure senators cited in introducing the GUARD Act, a bill to fund blockchain tracing for local police. Victims spanned all 50 states.

Losses were financed from retirement accounts, home equity lines, second mortgages and personal loans. One woman sent nearly $640,000 from her retirement fund; another lost more than $1 million over six months.

FinCEN devoted a section of the report to self-harm, noting victims are sometimes at risk after discovering the fraud, and pointed them to the 988 Suicide and Crisis Lifeline.

The compounds sit mostly in Cambodia, Laos and Burma, staffed by people the United Nations numbers in the hundreds of thousands, many trafficked there through fake job adverts. Interpol has warned the model is spreading well beyond Southeast Asia, and U.S. authorities seized more than $25 million tied to such schemes this year.

Since 2015, FinCEN’s Rapid Response Program has interdicted $1.8 billion and recovered just over $1 billion for 5,790 American victims.