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.
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.
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.
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.
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.
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.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Siren has quickly emerged as one of the strongest memecoin performers, surging over 150% within…
Altcoin season in 2026 remains uncertain as key conditions for a strong rally have not…
The U.S. Marshals Service has moved 8.2 Bitcoin worth about $606K to Coinbase Prime. The…
The hyperliquid price prediction just got a major push after Bitwise, Grayscale, and 21Shares all…
Circle has been hit with a class-action lawsuit in Massachusetts alleging it failed to freeze…
The bitcoin price prediction from Grok AI calls for a peak near $250,000 in 2026…
