Secret Service Seizes $400 Million in Crypto 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 patience. Jamie Lam, an investigative analyst with the US Secret Service, highlighted the agency’s methods during a law enforcement conference, noting that scammers often lure victims into seemingly legitimate crypto investment platforms, only to vanish with their deposits.

The GIOC’s crypto trove, much of which is stored in a single cold-storage wallet, is the result of numerous investigations into various scams. Lam’s team employs domain records, blockchain transactions, and VPN slip-ups to identify fraudsters. In one instance, a cryptocurrency payment led investigators to another wallet, while in another, a brief VPN failure exposed an IP address, helping agents trace the scam’s digital trail.

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. Smith noted that even short training sessions can reveal the extent of crypto-related crimes in these regions. The Secret Service’s work has uncovered a range of scams, from romance-investment schemes to sextortion cases. One 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. The Secret Service’s efforts have been crucial in recovering stolen crypto, often depending on cooperation from industry players. Companies like Coinbase and Tether have assisted in high-profile cases by analyzing transactions and freezing wallets. One of the largest single recoveries involved $225 million in USDt linked to romance scams.

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. The Secret Service’s work in this area is part of a broader mission to combat digital financial crimes, extending its decades-old efforts into the digital world. The New York field office has taken on a leading role in global cryptocurrency enforcement and training efforts, making significant strides in global crypto enforcement.