- The U.S. Secret Service has confiscated nearly $400 million in cryptocurrency over the past decade, amassing one of the largest government-held crypto stashes by combating scams like romance fraud, fake investments and extortion.
- Using digital forensics (e.g., tracing blockchain transactions, domain registrations and VPN leaks) combined with persistence, the Secret Service's Global Investigative Operations Center (GIOC) has dismantled schemes ranging from Nigerian sextortion to Russian investment traps.
- In 2024 alone, Americans reported $9.3 billion stolen via crypto fraud – over half of all U.S. internet crime losses.
- Firms like Coinbase and Tether aid law enforcement by freezing wallets and analyzing transactions. The Secret Service also trains investigators in 60+ countries, including Bermuda, to strengthen oversight in weak jurisdictions.
In a world where digital deception has become the crime of the century, the U.S. Secret Service has quietly seized nearly $400 million in cryptocurrency over the past decade – assembling one of the largest government-held crypto stashes on record.
The clandestine effort, led by its Global Investigative Operations Center (GIOC), highlights the escalating battle against cybercriminals who exploit blockchain anonymity to steal billions. These bad actors often prey on vulnerable victims through romance scams, fake investments and outright extortion.
The GIOC's success hinges on old-school investigative patience combined with digital forensics. Agents trace fraud by dissecting blockchain transactions, domain registrations and VPN failures.
"It's not always that hard. Sometimes you just need patience," said Jamie Lam, an investigative analyst with the Secret Service. That persistence has unraveled schemes ranging from Nigerian sextortionists to Russian-operated investment traps.
The Secret Service's first digital currency crackdowns targeted Liberty Reserve and E-Gold in the 1990s, shutting down early online payment systems favored by criminals. Today, crypto scams dwarf those eras in scale.
In 2024 alone, Americans reported $9.3 billion stolen through crypto fraud – more than half of all U.S. internet crime losses that year. Older adults are disproportionately targeted by fake investment platforms promising quick riches. (Related: Older generations now risking their life savings in CRYPTO.)
Behind the scenes, industry collaboration has been critical. Firms like Coinbase and Tether assist in freezing wallets and analyzing transactions.
One notable recovery involved $225 million in Tether linked to romance scams, showcasing how stablecoin issuers are increasingly pressured to police their networks. Tether CEO Paolo Ardoino called it "setting the standard for compliance," though critics argue more regulation is needed to curb abuse.
Crypto crime never sleeps: Feds hunting blockchain bandits
The Secret Service now trains investigators in over 60 countries, targeting jurisdictions with weak oversight. Lawyer Kali Smith, head of the agency's cryptocurrency strategy, conducted one such training in June. She and her team flew to the British overseas territory of Bermuda for this endeavor.
Bermuda Gov. Andrew Murdoch said in an interview: "Technologies and financial services are fantastic for economic growth, but they can also be exploited. Alongside the benefits, you need strong investigative powers to deal with abuse under the law."
The stakes are undeniably human. One Idaho teen, extorted out of $600 after sharing a nude photo online, saw agents trace payments to a Nigerian suspect now awaiting extradition.
In Connecticut, crypto thieves kidnapped a hacker's parents, beating them for ransom. Such cases underscore crypto's dark duality, a tool for both innovation and predation.
The Secret Service's cold-storage wallet keeps swelling – a digital Fort Knox built from recovered scams. But as long as fraud outpaces vigilance, its work remains unfinished. In the Wild West of finance, even the most sophisticated outlaws leave trails – and someone is always watching.
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Watch crypto executive Bobby Lee emphasizing the need to flush out "bad actors" in the crypto sphere in this clip.
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