US Charges Six in Africa-Based NFT Crypto Scam Case
The operation lured victims on dating platforms before draining funds through fraudulent NFT websites.
Table Of Content
TL;DR
- US prosecutors charged six Africa-based suspects over an alleged NFT crypto investment scam.
- The operation lured victims on dating platforms before draining funds through fraudulent NFT websites.
- Investigators traced 74 cryptocurrency wallets linked to roughly 800 victims who reported losses.
- The DOJ Scam Center Strike Force reports over $1 billion in cryptocurrency restrained to date.
On October 27, 2026, the U.S. Department of Justice (DOJ) announced criminal charges against six Africa-based suspects involved in an alleged cryptocurrency investment fraud network. Federal prosecutors said the scheme targeted American investors through fraudulent non-fungible token (NFT) trading platforms.
The Justice Department’s Scam Centre Strike Force says the group ran compounds in Madagascar with links to Southeast Asia and China. The DOJ’s Scam Centre Strike Force brought the charges as part of a broader crackdown that continues to expand its reach against international cybercrime syndicates.
How the Alleged Scheme Worked
According to prosecutors, the perpetrators created fake online personas on popular dating platforms, posing as attractive women and building trust with targets. Once trust was established, they persuaded victims to connect their crypto wallets to fraudulent NFT investment websites.
Victims were encouraged to keep funding those wallets. These fraudulent sites prompted users to grant unlimited smart contract spending approvals. Once authorised, the malicious protocols automatically drained cryptocurrency and assets directly from the connected wallets.
Chui Kok Wa, one of the suspects, is charged with conspiracy to commit wire fraud as the alleged leader. Prosecutors say his phones held scripts telling workers to exploit victims’ feelings to get them to invest. The FBI identified about 74 wallets linked to about 800 victims who reported losses. Prosecutors say stolen funds moved to accounts associated with China-based actors.
Operations Expand Beyond Southeast Asia
Online investment fraud compounds have historically operated primarily out of Southeast Asia. Authorities now note that criminal syndicates are increasingly establishing scam compounds across Africa, including operations in Madagascar.
Investigators noted that these international operations often involve human trafficking, coercing workers into managing fraudulent online accounts under harsh conditions.
The DOJ reports that in August 2026, the FBI deployed to Madagascar at the invitation of the country’s justice ministry and national police.
Authorities took down 13 scam compounds and seized more than 3,200 devices. However, US Attorney Jeanine Pirro said the US was blocked from interviewing suspects, and Madagascar sent numerous suspects to China before the investigation finished.
Pirro is looking for a better outcome this time and has called on Madagascar to extradite the six defendants. Pirro said the Strike Force will “follow the scammers to Africa, India, Europe” as it widens its scope.
More Than $1 Billion in Crypto Restrained
Alongside the specific indictment, the DOJ says the Strike Force has restrained $1,006,460,156.82 in crypto-related fraud proceeds since its November 2025 launch. It also reports seizing 700 fraudulent crypto investment websites.
To accurately interpret government figures regarding seized digital assets, it is essential to distinguish between the three stages of enforcement:
- Restrained: Authorities have legally frozen or restricted access to the assets while legal proceedings remain ongoing. This prevents suspected criminals from transferring or spending the funds.
- Forfeited: A court formally rules that the government has permanently seized title to the assets after proving they derive from criminal activity.
- Returned: The government officially processes and transfers restrained or forfeited funds back to verified scam victims.
The $1 billion reported by the Strike Force reflects assets currently restrained. It does not indicate that this sum has been returned to victims.
Why This Matters
This case is part of a recent crackdown by foreign governments on crypto-related scams across the continent. On October 26, Interpol reportedly arrested more than 1,400 suspects in a two-month cybercrime operation called Operation Serengeti III. In early October, crypto giant Coinbase partnered with the US and UK governments to dismantle West African crypto crime syndicates.
