US Secret Service Seizes $400 Million in Digital Assets, Combats Cryptocurrency Fraud

The US Secret Service's Global Investigations and Operations Center (GIOC) has seized approximately $400 million in digital assets over recent years. These assets are predominantly stored in a single cold wallet, making it one of the largest cold wallets globally. The agency accumulated these assets through a series of investigations, utilizing open-source tools, blockchain analysis, and other methods to track the funds.

Cryptocurrency-related fraud is a significant contributor to internet crime losses in the United States. In 2024, Americans lost $9.3 billion to cryptocurrencies, which is more than half of the total $16.6 billion in losses. A substantial portion of these losses is attributed to the elderly, who lost nearly $2.8 billion, primarily to fraudulent investment sites. These schemes often lure victims with promises of profitable cryptocurrency investments through online communication. Initial deposits yield modest but steady returns, encouraging victims to increase their investments, often with borrowed funds. However, when the platform closes, their balances disappear.

The largest seizure in GIOC history—more than $225 million in Tether (USDT) stablecoins—is linked to such a scheme. In one case, investigators identified a domain name registered by scam organizers after exploiting a brief VPN failure. In another instance, an unknown person blackmailed an Idaho teenager by threatening to send an intimate photo to his relatives. The victim paid $300 twice before contacting the police. GIOC experts reconstructed the extortion using blockchain data, screenshots, and receipts, and employed a dummy payer. This led to the tracing of an account, registered to a Nigerian passport, that processed about 6,000 transactions worth nearly $4.1 million. The suspect was apprehended by UK police upon arrival in the United Kingdom.

The GIOC relies on the assistance of partners in the crypto industry for operations to recover stolen digital assets. Coinbase and Tether have publicly confirmed their assistance to the agency in several recent cases, which included providing information and freezing wallets. This collaboration has been crucial in the agency's efforts to combat cryptocurrency-related crimes and recover stolen assets.