U.S. Secret Service Seizes $400 Million in Crypto Fraud, Trains 60 Countries

The U.S. Secret Service is intensifying its global efforts to combat cryptocurrency scams, leveraging its Global Investigative Operations Center (GIOC) to collaborate with law enforcement agencies in over 60 countries. The GIOC focuses on educating these agencies on tracking and halting digital fraud, as evidenced by a recent training session held in a region known for its crypto-friendly regulations.

Scammers often initiate their schemes with deceptively simple messages and friendly conversations, luring victims to fake cryptocurrency investment websites. These sites are designed to appear legitimate, complete with flashy charts, professional designs, and even customer support. Victims are initially shown small profits to build trust, encouraging them to invest more, sometimes even borrowing money. Once the victims invest more, the sites stop responding, and the money disappears.

Jamie Lam, a Secret Service investigative analyst, explained the modus operandi of these scammers. They often use attractive photos of individuals to lure victims, but these photos are usually of someone entirely different, often an older individual in a different country. Using digital tools and patience, agents can trace these fake sites through their domain names, crypto wallets, and IP addresses, sometimes left behind by VPN glitches. Lam noted that the process is not always complex; sometimes, it just requires patience and the right tools.

The GIOC employs a combination of spreadsheets, subpoenas, and open-source data to track and seize fraudulent digital assets. Over the past decade, the team has successfully seized nearly $400 million in digital assets, most of which were held in a single secure crypto wallet. Kali Smith, the agency’s crypto strategy lead, highlighted that training is offered for free to countries with weak enforcement or popular residency-for-sale programs. This training has proven effective, with some countries realizing the extent of crypto fraud in their regions after just a week-long session.

In one notable case, an Idaho teenager was tricked into sending a nude photo and then blackmailed. The scammer demanded $300, threatening to share the image with the teen's family. The teen paid twice before contacting the police. The GIOC traced the payments, which passed through another teen used as a money mule, and ended in a wallet with $4.1 million in crypto tied to a Nigerian passport. The suspect was subsequently arrested in England.

Crypto fraud has become the leading cause of losses in U.S. online crime. In 2024, Americans lost $9.3 billion to crypto scams, with older adults losing $2.8 billion. Some cases have turned violent, with one man being tortured in New York for his wallet password and the parents of a teen hacker being kidnapped in Connecticut. Companies have assisted the Secret Service by freezing wallets and tracing funds. One recovery effort brought back $225 million in Tether connected to romance scams.

This enforcement highlights the growing reach of digital fraud and underscores the need for stringent international measures. Social media discussions indicate community concerns over enhanced scrutiny and potential implications for decentralized finance platforms. The operation’s success may inspire other nations to bolster their crypto regulations. Ongoing seizures reduce illicit activities, with $400 million retracted from circulation, suggesting a decline in scam-related movements impacting market liquidity.

Similar efforts in recent years include the June 2025 bust recovering $225.3 million from scams. These operations represent a consistent enforcement pattern, focusing on high-value cryptocurrencies and stablecoins in cybercrime control. This initiative may encourage global standard-setting in crypto regulations. Historical trends show concerted international efforts yield substantial deterrents against persistent scam infrastructure, especially with increased legal ramifications.