Secret Service Seizes $400 Million in Crypto Over Decade

The United States Secret Service has emerged as a significant player in the seizure of cryptocurrency, amassing nearly $400 million in digital assets over the past decade. This substantial haul is a testament to the agency's meticulous investigations and international collaborations, which have enabled it to stay ahead of digital criminals. The seized funds, much of which are stored in a single cold wallet, highlight the Secret Service's growing role in combating crypto-related crimes.

The agency's Global Investigative Operations Center (GIOC) has been at the forefront of identifying and seizing illegal crypto funds. A recent seizure of over $225 million in cryptocurrency from a sophisticated blockchain-based money laundering network marked the largest seizure in the Secret Service's history. This achievement underscores the agency's commitment to tracing and recovering stolen funds, often through the use of open-source platforms, transaction analysis, and patient investigative work.

Many of the seized funds are linked to romance scams and fake investment platforms, which have become increasingly prevalent with the rise of cryptocurrency. These scams often involve "catfish" tactics, where scammers use fake images to lure victims into sending funds. The transparency of crypto transactions, while a design feature, requires significant effort to trace, often involving tools like domain registry searches and blockchain forensics. Occasionally, mistakes by scammers, such as VPN slip-ups, reveal their real IP addresses, aiding investigators in their efforts.

One notable case involved a teenager in Idaho who was coerced into sending intimate images and paying $300 twice. The investigation revealed that the funds passed through nearly 6,000 crypto transactions and were laundered using another coerced teenager acting as a money mule. This case, along with the $225 million USDT seizure linked to romance scams, demonstrates the Secret Service's capability in handling complex crypto-related crimes.

Despite these successes, crypto crime continues to rise. According to FBI data, Americans lost $9.3 billion to crypto scams in 2024 alone, accounting for more than half of all internet fraud losses for the year. The first half of this year has already seen over $2.47 billion in losses from hacks, scams, and exploits, indicating an upward trend in crypto-related crimes. Security firm CertiK reported that wallet hacks caused $1.7 billion in losses across just 34 incidents in the first six months of this year. Phishing scams netted over $410 million in 132 separate attacks, and notable incidents like the Bybit hack and the Cetus Protocol exploit accounted for a significant portion of the damage.

Ethereum remains the most frequent target, with over $1.6 billion lost in 175 different events. The Secret Service's $400 million crypto stash underscores the importance of enforcement action against crypto crime and the need for enhanced security and awareness within the crypto industry. While enforcement efforts are improving, bad actors are becoming more sophisticated, necessitating continuous vigilance and innovation in combating these crimes.