U.S. Secret Service Seizes $225 Million in Crypto Linked to Pig Butchering Scam

In a landmark operation, the U.S. Secret Service, with significant support from Coinbase, has successfully seized $225 million in cryptocurrency linked to a large-scale scam. This seizure is the largest of its kind in the agency's history, underscoring the growing collaboration between law enforcement and cryptocurrency exchanges in the fight against financial crimes.

The scam, known as "pig butchering," involved fraudulent relationships and business partnerships that lured victims into investing their money, only to have it stolen. The investigation began in late 2023 when Tether froze 39 suspicious wallet addresses containing $225 million in stolen USDT. These wallets were later connected to over 140 accounts on the crypto exchange OKX, many of which were operated by individuals in Southeast Asia involved in cybercrime.

In early 2024, Coinbase collaborated with the Secret Service and other crypto exchanges in a special investigation. By examining on-chain transactions between February 26 and 29, Coinbase helped identify over 130 Coinbase users who were victims of the scam, losing nearly $2.3 million in total. This effort was crucial in mapping the transactions and identifying the wallets involved in the scam, leading to the historic seizure on June 18, 2025.

The Department of Justice has since moved to freeze the seized funds, with the next step being the return of the money to the victims. The Secret Service has launched a program to help victims recover their stolen money, requiring them to file a report with the FBI Internet Crime Complaint Center and include a specific code for identification. Coinbase has also provided guidelines and support to users in retrieving their transaction history and submitting the necessary documents.

Tether's role in this operation was pivotal, as the company destroyed the stolen USDT tokens on-chain and minted new ones, which were then forwarded to a wallet controlled by the U.S. Secret Service. This transparent process, visible on the blockchain, demonstrates the potential of blockchain technology in aiding law enforcement and protecting the public.

This seizure marks a significant victory in the battle against online crypto investment scams. It highlights the effective collaboration between law enforcement, cryptocurrency exchanges, and blockchain technology. Coinbase's involvement has given hope to hundreds of victims, who may now have a chance to retrieve their lost funds. The operation also underscores the need for clear federal regulations that encourage compliant exchanges to share data with law enforcement, facilitating more effective stings and seizures in the future.