Cryptocurrency exchange Coinbase has announced that it played a key role in assisting the US Secret Service with a recent investigation that resulted in the seizure of $225 million tied to crypto investment scams.
On June 18, the Justice Department revealed plans to confiscate over $225 million in codes retrieved by the Secret Service, claimed to have been stolen by a fraudster involved in a scheme known as “pig slaughtering”. An agent named Sean Bradstreet described this as the largest cryptocurrency breach on record.
In a blog post published on Tuesday, Coinbase mentioned its involvement in a collaborative “Investigation Sprint” with the Secret Service in 2024. This initiative included various exchanges and focused on identifying fraud victims, analyzing transaction flows, and establishing cases for crypto seizures.
Over 130 Coinbase Users Affected by Fraud
Coinbase noted that between February 26 and February 29 of last year, their team monitored millions of crypto transactions linked to illegal wallets and other suspicious account activities. This data helped identify fraud victims for the Secret Service.
According to Coinbase, “This blockchain analysis and the production of Subpoena Records enabled the US Secret Service to recognize more than 130 Coinbase customers who were unwittingly involved, representing a collective loss of $2.3 million.”
The Secret Service also traced some of the frozen funds to 140 accounts on the Crypto Exchange OKX, many of which were associated with individuals suspected of operating scams in Southeast Asia, as per Coinbase’s findings.
Tether Burns $225 Million in USDT
Tether, the issuer of the stablecoin, reportedly froze 39 wallet addresses containing $225 million this year to facilitate the DOJ’s investigation. Subsequently, Tether burned all the tokens from those addresses.
Coinbase added that an equivalent amount of new USDT was reissued and subsequently transferred to a wallet managed by the Secret Service. They commented, “This process is visible on-chain and demonstrates in real time how cryptocurrency can enhance transparency in law enforcement efforts.”
Global Authorities Seize Stolen Cryptocurrency
Recently, in May, the Australian Federal Police managed to seize over $2.6 million in 25 Bitcoin (BTC), which was reportedly linked to the theft of 950 Bitcoin from a French crypto exchange back in 2013.
A few months earlier, in February, German authorities confiscated 34 million euros (around $38 million) in cryptocurrency from a platform known as Crypto, linked to an effort to launder funds following a $1.4 billion hack of Bybit.
