In a major win against crypto fraud, Coinbase has announced its vital role in helping the U.S. Secret Service seize $225 million in stolen cryptocurrency. The operation marks the largest crypto seizure in the agency’s history and demonstrates how blockchain transparency can support law enforcement on a global scale.
💼 Biggest Crypto Seizure Ever by US Secret Service
On June 18, the U.S. Department of Justice filed to seize over $225 million linked to crypto investment scams, often referred to as “pig butchering” schemes. These scams trick victims into believing they are engaging in legitimate investment relationships, only to drain their funds.
Coinbase said it participated in an “investigative sprint” alongside other crypto exchanges and law enforcement teams earlier this year. The exchange traced illicit wallet flows, identified potential scam victims, and supported efforts to freeze fraudulent funds.
🔎 130 Coinbase Users Among Victims
Between February 26 and 29, Coinbase tracked millions in crypto transactions tied to illicit wallets. As a result, the Secret Service was able to identify over 130 Coinbase customers who had been unknowingly scammed—representing $2.3 million in stolen funds.
Even more alarming, many funds were linked to 140 accounts on the crypto exchange OKX, tied to individuals located in Southeast Asian scam compounds. These findings helped authorities trace and seize the larger stolen pool of funds.
🔥 Tether Freezes and Burns $225M in USDT
Tether, the issuer behind the popular stablecoin USDT, also played a key role. In 2023, it froze 39 wallet addresses holding the suspicious funds. Then, in coordination with law enforcement, it burned the $225 million in USDT—permanently removing those tokens from circulation.
Later, the same amount of new USDT was reissued and transferred to a Secret Service-controlled wallet. Coinbase praised the on-chain transparency of this action, stating it showed how blockchain can provide real-time visibility during law enforcement operations.
🌍 Global Crypto Crackdowns Continue
This case is part of a broader global push to fight crypto crime. In May, Australian police seized 25 Bitcoin (over $2.6 million) from a suspected hacker. Earlier this year, German police also seized $38 million in crypto from a laundering operation linked to the Bybit exchange hack.
🧠 What This Means for Crypto Users
This high-profile operation highlights two things: crypto scams remain a serious threat—and blockchain tech can be a powerful tool to stop them. With exchanges like Coinbase working closely with regulators and law enforcement, stolen crypto is no longer invisible.
The story also reminds users to stay alert, verify investments, and learn to spot crypto scams early.
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