Secret Service Seizes $400 Million in Crypto Assets Over 10 Years

The U.S. Secret Service has initiated a new campaign aimed at combating crypto scams, deploying a specialized team focused on digital financial crimes. This initiative is part of a broader effort to address the growing epidemic of crypto fraud, which has resulted in nearly $400 million in losses over the past decade.

The agency's Global Investigative Operations Center (GIOC) employs a combination of advanced software, legal subpoenas, and meticulous spreadsheets to identify and pursue criminals involved in fraudulent crypto activities. These activities include pig butchering operations, where victims are lured into fake investment schemes.

According to sources familiar with the matter, the GIOC has successfully seized nearly $400 million in digital assets over the last 10 years. The Secret Service has a long history of leading crackdowns on digital currencies, including notable cases like Liberty Reserve and E-Gold in the 1990s, making it one of the world's largest crypto custodians.

A team led by Kali Smith, who directs the Secret Service’s cryptocurrency strategy, is conducting workshops in various countries to train law enforcement and prosecutors in uncovering digital crimes. These training sessions are provided free of charge and are particularly targeted at jurisdictions where criminals exploit weak oversight or residency-for-sale programs.

Smith emphasizes that fraudsters often have misconceptions about the safety of using cryptocurrencies like Bitcoin. "They think they can use Bitcoin and be safe. But that isn’t the case," she stated. The Secret Service has also formed partnerships with industry leaders such as Coinbase and stablecoin issuer Tether, which have provided assistance in recent cases through trace analysis and wallet freezes.

Crypto-related fraud now constitutes the majority of internet crime losses in the U.S. Last year, Americans reported $9.3 billion in crypto-related scams, which is more than half of the total reported $16.6 billion in internet crime losses. This underscores the urgent need for enhanced measures to combat digital financial crimes.