Secret Service Seizes $400 Million in Crypto Assets Over Decade

The US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the world’s largest crypto cold wallets. The agency’s Global Investigative Operations Center (GIOC) has been instrumental in tracking funds through open-source tools, blockchain analysis, and meticulous investigation. Jamie Lam, an investigative analyst with the US Secret Service, highlighted the agency’s approach during a law enforcement conference, emphasizing the use of domain records, blockchain transactions, and VPN slip-ups to identify fraudsters.

The agency’s crypto trove, much of which sits in a single cold-storage wallet, is the result of numerous investigations into scams. These scams often lure victims into seemingly legitimate crypto investment platforms, where initial profits are shown before the sites vanish with the victims' deposits. Lam described a typical scheme where scammers use attractive photos to lure victims, often hiding behind false identities.

Kali Smith, who directs the Secret Service’s crypto strategy, has trained officials in over 60 countries to unmask online financial crimes. The agency has focused on jurisdictions with weak oversight or programs selling residency to foreign nationals, often revealing that these regions are unaware of the extent of the scams occurring within their borders. The Secret Service’s work has uncovered a variety of scams, including romance-investment schemes and sextortion cases. One notable investigation involved an Idaho teenager who was extorted after sending a nude photo to an online stranger. The scammer extorted $300 twice before the teen went to the police. Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport. British police arrested the suspected extortionist when he arrived in England, where he remains in custody pending extradition.

Crypto-related scams have become the top driver of US internet crime losses. Americans reported $9.3 billion stolen in crypto fraud in 2024, more than half of the $16.6 billion in total internet crime losses that year. The first half of 2025 has seen more than $2.47 billion in losses due to hacks, scams, and exploits, representing a nearly 3% increase compared to the $2.4 billion stolen in 2024. Recovering stolen crypto often depends on cooperation from industry players. Coinbase and Tether have acknowledged assisting in high-profile cases by analyzing transactions and freezing wallets. One of the largest single recoveries involved $225 million in USDt (USDT) linked to romance scams.

The Secret Service’s efforts in crypto enforcement have been crucial in combating digital asset fraud, which is now the top cause of cybercrime losses in the US. The agency’s focus on tracking dirty money is part of a broader mission that has now been extended to the digital world, with the New York field office taking on a leading role in global cryptocurrency enforcement and training efforts. The Secret Service’s work has not only recovered significant amounts of stolen digital assets but has also trained law enforcement officials worldwide to better combat online financial crimes.