A Decade of Cryptocurrency Seizures

Over the past ten years, the U.S. Secret Service has quietly amassed a substantial cache of cryptocurrency, valued at nearly $400 million. This operation, conducted by the agency’s Global Investigative Operations Center (GIOC), has meticulously tracked blockchain transactions. By utilizing open-source tools, traditional investigative techniques, and capitalizing on scammers’ mistakes, they have successfully traced illicit funds back to their origin.

Building a Crypto Repository

According to a report by Bloomberg, the GIOC has confiscated digital coins from a series of fraudulent schemes. Investigators have observed a recurring pattern in which romance-investment platforms entice victims with small gains before disappearing with their deposits. In many instances, victims witnessed their account balances increase by hundreds of dollars, only to find themselves unable to make withdrawals, as customer support vanished. These funds often ended up frozen in a centralized cold-storage wallet.

Global Efforts to Combat Crypto Scams

The U.S. Secret Service has initiated a worldwide effort to tackle cryptocurrency fraud, including rug pulls and phishing scams, successfully seizing over $400 million to date. By collaborating with more than 60 countries and top cryptocurrency exchanges, they are working to cleanse the digital space and apprehend scammers.

Unveiling Scammers and Their Tactics

In a notable case, analysts tracked approximately $4.1 million in scam proceeds to an account linked to a Nigerian passport. A momentary VPN lapse exposed an IP address, which led to the arrest of a suspect in Guildford by British authorities.

One American teenager, unknowingly involved, lost $300 twice in a sextortion scheme, serving as a money mule. Investigators discovered that a photo sent by a scammer, portraying an attractive model, was actually that of an older man residing in Russia. Such deceptive tactics highlight the lengths to which scammers will go to conceal their true identities.

Empowering Global Law Enforcement

The Secret Service, led by crypto team head Kali Smith, has been instrumental in training officials from over 60 countries. Many of these nations were unaware of the scams occurring within their borders until these educational initiatives began.

Law enforcement agencies have learned to navigate domain records and trace blockchain transactions, resulting in faster shutdowns of fraudulent operations. Industry leaders such as Coinbase and Tether have also contributed by assisting in tracing transactions and freezing suspicious wallets in high-profile cases.

The Escalating Threat of Crypto Fraud

Fraud involving digital currencies has surged to the top of the list of U.S. internet crime losses. In 2024 alone, Americans reported losing $9.3 billion to cryptocurrency scams, accounting for more than half of the $16.6 billion lost to all internet crimes during that year, as per FBI data. In the first six months of 2025, $2.50 billion was lost to various crypto-related crimes, surpassing the $2.41 billion lost throughout 2024.