- Binance and Coinbase reportedly participated in a joint operation targeting crypto scams in West Africa.
- $11M funds were flagged for freezing
- The $11M amount indicated that the cryptocurrencies’ ownership remains in dispute.
- Funds freezing, seizure, and return to owners depend on litigation processes.
Binance and Coinbase are crypto-exchange platforms which enable the purchase, sale, and exchange of digital assets. The companies have reportedly conducted a joint venture to track down crypto fraudsters and money launderers in West Africa. As many as $11M were frozen during the campaign as authorities continue to investigate the illicit activities of the suspected network.
The figures demonstrate the extent of involvement of crypto exchanges in tracing and tracking financial crimes. The digital nature of cryptocurrencies facilitates transaction ease in complex transactions, such as money laundering, fraud, etc. Investigators and enforcers are increasingly looking towards partnerships with crypto-exchanges, blockchain analytics, and investigative tools to identify financial crimes and prosecute offenders.
The National Crime Agency hosted a joint crackdown on West African scam networks with law enforcement and tech companies.
Chainalysis identified hundreds of unique scammer identifiers and more than $10M USD in funds for seizure. https://t.co/0H80D690GQ
— Chainalysis (@chainalysis) October 13, 2026
Understanding the $11M Amount Flagged For Freezing
It is important to understand what the $11M amount flagged for freezing means. The figure indicates the amount of funds identified for freezing by the authorities. The cryptocurrencies’ ownership is still under investigation, and therefore funds cannot be returned to the account holders. Furthermore, any amount of cryptocurrency flagged for freezing cannot be withdrawn, deposited, or transferred until the investigation concludes.
How Crypto Scams Work
Crypto scams usually involve fake investment sites, impersonation, and social engineering. Fraudsters bait potential victims through social media and encourage them to invest in crypto wallets or crypto exchanges. Consequently, investors are coerced into depositing some funds and crypto into the scammer’s wallet, and then the funds are transferred to other crypto wallets through multiple steps. This modus operandi makes it difficult for investigators to follow funds and identify the exact location of the money.
Law enforcers and crypto-exchange collaborations can freeze suspected funds and take down the websites to prosecute the perpetrators. However, even when funds are frozen, litigation processes determine whether the money is rightfully owned by the investors or not. Until then, the cryptocurrency is subject to seizure, and the account is suspended. Therefore, the $11M amount flagged for freezing indicates that the ownership of the cryptocurrencies is under litigation.
Crypto Exchanges Strengthen Compliance Through KYC
Funds freezing and scanning efforts are significant to cryptocurrency exchanges. When illegal crypto transactions originate from an exchange, the company faces regulatory scrutiny. Effective Know Your Customer due diligence procedures allow exchanges to detect and report suspicious actions. Furthermore, collaboration with regulatory bodies facilitates the investigative processes and enhances a company’s reputation in the market.
Crypto Fraud Risks Highlight Need For Investor Caution
The campaign reveals the extent to which consumers are exposed to crypto fraudsters. People must perform due diligence before investing in any crypto-exchange business or platform. In addition, customers must be cautious of predators who use coercive methods to convince them to cryptocurrency or money into a particular crypto wallet.
Besides, there are investment platforms selling the promise of guaranteed investment rewards that users should be wary of. Any investments made using cryptocurrencies are irreversible and therefore consumers should ensure they are dealing with legitimate business platforms, and consider consulting with financial advisors before investing.
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