Over the past decade, the US Secret Service has reportedly seized approximately $400 million in cryptocurrency assets as part of its ongoing fight against online fraud.
The agency's Global Investigations Operations Center (GIOC) played a crucial role in tracking illegal funds by utilizing blockchain analysis, open-source tools, and thorough investigative methods.
Tether and Coinbase Support US Agents in Targeting Cryptocurrency Fraud
According to a Bloomberg report, a significant portion of these seizures stemmed from crackdowns on fraudulent investment platforms.
In these scams, victims are led to believe they are making legitimate cryptocurrency investments, but the platforms disappear with their funds.
Meanwhile, the Secret Service is closely collaborating with major industry players like Coinbase and Tether to recover stolen funds. These companies help provide blockchain insights and freeze suspicious wallets.
For example, a major operation resulted in freezing $225 million in USDT related to romance-investment fraud. These scams often disproportionately target elderly individuals in 2024.
Tether's CEO Paolo Ardoino emphasized the company's transparency and commitment to cooperating with law enforcement. He stated that Tether is setting compliance standards in the digital asset sector.
"We are setting compliance standards in digital assets and working to prevent stablecoins from being misused," he added.
In 2024, Americans reported $9.3 billion in cryptocurrency-related fraud losses, accounting for more than half of annual internet crime losses.
However, despite the reported scale of fraud, data shows that the proportion of cryptocurrency transactions linked to illegal activities is decreasing.
TRM Labs reported that global cryptocurrency transaction volume surged to $10.6 trillion last year, a 56% increase from 2023. Meanwhile, illegal activities decreased to $45 billion, representing just 0.4% of total transactions, down from 0.86% the previous year.
"The largest categories of illegal activity on the blockchain remained largely unchanged from 2023, including fraud and scams (24% of illegal transaction volume), sanctions (33%), and blocklisting (29%)," TRM Labs explained.
The decline in illegal transactions reflects enhanced enforcement and security measures, but scammers continue to adapt. Many exploit vulnerabilities in decentralized financial systems, blockchain protocols, and emerging technologies.
In response, the Secret Service has intensified its efforts globally. The agency provides training to prosecutors and investigators in over 60 countries, helping to combat cryptocurrency-related crimes in high-risk jurisdictions.
