Coinbase Aids U.S. Secret Service in $225 Million Crypto Seizure

Coinbase, a leading cryptocurrency exchange, has announced a significant partnership with the U.S. Secret Service in a major operation to seize stolen cryptocurrency. The collaboration resulted in the recovery of $225 million in USDT, which was stolen through pig butchering scams. This operation represents one of the largest cryptocurrency seizures linked to investment scams on the internet.

The U.S. Secret Service managed to seize 39 wallet addresses containing the stolen funds, which had been traced to 140 accounts on the OKX exchange. Several of these OKX accounts were found to be in the names of victims who had been trafficked into Southeast Asian scam compounds, highlighting the human trafficking aspect of these scams. Coinbase participated in a joint investigation with the Secret Service and other crypto exchanges between February 26-29, 2024. During this multi-day effort, Coinbase team members worked directly with Secret Service agents to trace millions in crypto transactions from illicit wallets back to platform transactions.

Through blockchain analysis and subpoena record production, authorities were able to identify more than 130 Coinbase customers who had been unknowingly defrauded, representing $2.3 million in total losses. Coinbase stated that these identified victims comprised only a fraction of the thousands likely affected across the broader cryptocurrency ecosystem through similar fraudulent schemes. The Secret Service has officially seized the $225 million and initiated a public campaign to return funds to scam victims through the FBI Internet Crime Complaint Center. Victims must provide proof of fund transfers to scam-related wallets, typically by downloading transaction history from their cryptocurrency platforms. Most of the victims employed Coinbase for their transactions, leading to an increase in customer support issues involving account access and retrieval of transaction history.

Tether destroyed $225 million of on-chain locked USDT during the seizure. The equivalent amount of new USDT was minted and moved into Secret Service-controlled wallets. The money will remain in government custody until it is delivered to confirmed victims. Coinbase published guidance to help customers access and provide the required transaction history records. The exchange continues to actively cooperate with law enforcement to offer victims the required information and support throughout the restitution process. Coinbase noted that this process was visible on-chain, offering a real-time example of how crypto can enhance transparency in law enforcement operations.

The Secret Service seizure is part of broader U.S. government efforts targeting cryptocurrency-enabled criminal activities. On 5 June 2025, authorities seized 145 domains and amounts of unreported crypto belonging to BidenCash, a dark web market offering millions of stolen credit card numbers and personal information. BidenCash had more than 117,000 users and made more than $17 million in revenue before law enforcement shut it down. Law enforcement redirected seized domains to government-controlled servers while seeking court approval to obtain related crypto assets through coordinated enforcement actions. In March 2025, the United States government formally established a Strategic Bitcoin Reserve, blending Bitcoin and other digital asset reserves. This policy action reflects strategic management tactics to leverage government holdings of cryptocurrency in international financial systems.