US authorities have charged six Africa-based suspects accused of running a cryptocurrency investment scam from Madagascar that allegedly targeted about 800 Americans through fake online identities and fraudulent investment platforms.
The US Department of Justice announced the charges on Tuesday, October 27, 2026, saying the alleged scheme involved a criminal network with links to Southeast Asia and China.
According to court documents, the group established scam compounds in Madagascar in early 2025, reportedly relocating operations from Cambodia following law enforcement action there.
Investigators allege that the suspects posed as women on dating websites and social media platforms to build relationships with potential victims before introducing them to fraudulent non-fungible token (NFT) investment opportunities.
Victims were allegedly persuaded to connect their cryptocurrency wallets to fake investment websites and deposit funds, which the operators then withdrew without their knowledge.
The Federal Bureau of Investigation identified approximately 74 cryptocurrency wallets linked to around 800 victims who reported financial losses. Investigators said the stolen funds were transferred to cryptocurrency accounts associated with China-based actors.
One of the accused, Chui Kok Wa, is charged with conspiracy to commit wire fraud and is alleged to have led the operation. Information recovered from his phones reportedly included employment contracts, staff rosters, salary records and scripts instructing workers on how to exploit victims’ emotions to encourage investment.
US Attorney Jeanine Ferris Pirro said the case demonstrated how transnational criminal networks were expanding their operations beyond Southeast Asia into Africa and Europe.
In August 2026, an FBI team travelled to Madagascar to assist local authorities in dismantling 13 suspected scam compounds. More than 3,200 electronic devices were seized during the operation, according to the Justice Department.
However, US authorities said efforts to interview individuals connected to the investigation were hindered after Madagascar repatriated several suspects to China before the inquiry was completed. Pirro called on Madagascar to cooperate with the US and extradite the six individuals facing charges.
The investigation has also raised concerns about possible human trafficking within the compounds. US authorities said 15 employees who reported being trafficked and abused were believed to be in custody in Madagascar. The US government obtained a material witness warrant to facilitate interviews with them.
The Justice Department also reported that its Scam Center Strike Force had restrained more than $1 billion in cryptocurrency linked to fraud and scams, seized 700 fraudulent cryptocurrency investment websites and disrupted access to thousands of Starlink terminals used by scam centres.
Meta also reported removing 17.3 million scam accounts from its platforms over the preceding year.
The department said the strike force would continue working with international law enforcement agencies and private-sector partners to disrupt criminal networks, identify victims and pursue those responsible for online financial fraud.
The charges remain allegations, and the accused are presumed innocent unless proven guilty in court.
