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Zameer Attar
Zameer Attar
Author
Reviewed by:
Qadir AK
Reviewed
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 07, 2025 11:05 UTC
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U.S. Secret Service Quietly Becomes a Major Crypto Holder After $400M Seizure
Secret Service Seizes $400M in Crypto from Scams – Using blockchain forensics and global training, the agency is disrupting major fraud networks.
Crypto Firms & Secret Service Team Up – With help from Coinbase and Tether, the agency recovered $225M USDT tied to global scam operations.
Over the past decade, the U.S. Secret Service has quietly become one of the largest holders of crypto, though not by investment. Instead, it has seized nearly $400 million in digital assets from a wide range of crypto scams, transforming itself into an unexpected heavyweight in crypto custody.
From Romance Scams to Investment Traps
Most of the crypto scams that the Secret Service has recovered are kept safely offline in cold storage. This means the digital keys needed to access the funds are stored on devices that aren’t connected to the internet, making them much harder for hackers to reach. Global Investigative Operations Center (GIOC) investigators revealed that many of these seized funds came from elaborate frauds, often beginning with harmless-looking messages and ending in wiped-out wallets.
Jamie Lam, an analyst with the Secret Service, describes how scammers use psychological manipulation and polished websites to gain trust before vanishing with crypto deposits. Her team traces stolen funds through blockchain forensics, VPN mishaps, and domain records, turning crypto’s perceived anonymity against the scammers.
Global Reach, Local Impact
To scale their efforts, the agency has trained officers in over 60 countries, focusing on regions with weak oversight. Kali Smith, who leads the global training efforts, shared how even a week of on-ground workshops has helped local authorities uncover hidden fraud rings.
One particularly chilling case involved an Idaho teenager blackmailed with compromising photos, with funds eventually traced through 6,000 transactions to a suspect carrying a Nigerian passport. UK authorities arrested the individual in Guildford, thanks to the transnational collaboration.
Crypto Firms Join the Fight
The Secret Service isn’t going it alone. Partnerships with major platforms like Coinbase and Tether have allowed swift tracing and freezing of illicit assets. In one notable case, the agency recovered $225 million in USDT linked to a romance-investment scam network.
Meanwhile, Scams Surge in 2025!
Despite these victories, crypto crime remains rampant. According to CertiK, investors lost $2.2 billion in the first half of 2025, with wallet hacks and phishing attacks being the leading culprits. Ethereum was hit the hardest, suffering $1.6 billion in damages.
As scams get smarter, the Secret Service is also stepping up not just to catch the scamsters, but also to hold onto the stolen crypto, showing they’re keeping pace with the world of digital crime.
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FAQs
The Secret Service traces stolen crypto through advanced blockchain forensics, analyzing transaction histories, and identifying vulnerabilities like VPN mishaps and domain records. They leverage specialized tools and expertise to follow the money trail on the blockchain, turning crypto’s perceived anonymity against the scammers.
The Secret Service has expanded its efforts globally by training law enforcement officers and prosecutors in over 60 countries, particularly focusing on regions with weak oversight. This transnational collaboration helps local authorities uncover hidden fraud rings and facilitates arrests, as seen in cases involving cross-border tracing of illicit funds.
Yes 
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