Coinbase Aids Secret Service in Record $225M Crypto Scam Bust

Crypto exchange Coinbase has revealed its pivotal role in assisting the U.S. Secret Service with an investigation that led to the seizure of $225 million worth of crypto linked to investment scams . Notably, officials described the event as the agency’s largest crypto-related seizure to date. The Department of Justice filed for the forfeiture on June 18, recovering funds allegedly stolen through a “pig butchering” scheme—a long-term social engineering scam that manipulates victims into fraudulent crypto investments. Coinbase announced in a blog post on Tuesday that it collaborated closely with the Secret Service in 2024 alongside several other exchanges, helping to identify victims and track stolen funds through blockchain analytics. Coinbase Traced the Scams and Froze the Funds Between February 26 and February 29, 2024, Coinbase’s investigative team tracked millions of dollars in transactions tied to illicit wallets and flagged suspicious account activity. This effort allowed the Secret Service to identify over 130 Coinbase customers who had unknowingly fallen victim to the scam, representing losses of $2.3 million. The investigation further revealed that many of the frozen assets were linked to over 140 accounts on OKX. According to Coinbase, these accounts were allegedly controlled by individuals detained in Southeast Asian scam compounds—facilities often tied to human trafficking and digital fraud operations. Similarly, stablecoin issuer Tether played a critical role by freezing 39 wallet addresses containing the stolen $225 million in USDT in 2023. Tether later burned the tokens, a process that permanently removes them from circulation, and reissued an equivalent amount of USDT to a wallet under Secret Service control. Coinbase also noted that the entire process was transparent and verifiable onchain, demonstrating how blockchain technology can support real-time law enforcement action. A Growing Trend of Global Crypto Seizures The seizure highlights a growing trend among international authorities targeting stolen digital assets. In May, the Australian Federal Police seized nearly 25 Bitcoin, valued at over $2.6 million, tied to a 2013 heist involving 950 stolen BTC from a French crypto exchange. Earlier in February, German authorities confiscated €34 million (roughly $38 million) from eXch , a crypto platform allegedly used to launder funds following the $1.4 billion Bybit hack. As scammers increasingly exploit crypto’s global reach, collaborative investigations like this demonstrate that blockchain’s transparency can be used as a powerful tool for justice. The post Coinbase Aids Secret Service in Record $225M Crypto Scam Bust appeared first on TheCoinrise.com .

Source: The Coin Rise