Coinbase revealed it played a pivotal role in a major U.S. law enforcement operation that resulted in the seizure of $225 million in allegedly stolen cryptocurrency.
The effort, led by the U.S. Secret Service, FBI, and U.S. Attorney’s Office, stems from a 2023 investigation into a large-scale fraud ring.
The funds, originally frozen by Tether in December 2023, were held in self-custody wallets linked to a human trafficking network running a “pig butchering” romance scam. That scam type involves criminals building fake romantic relationships to defraud victims of large sums of crypto.
Coinbase Tracked Funds and Helped Identify Victims
Coinbase, one of the top U.S.-based cryptocurrency exchanges, said it assisted investigators by tracking the stolen funds across blockchain networks. The company also contributed to identifying eligible victims who may receive restitution from the seized assets.
“This was the largest cryptocurrency seizure in U.S. Secret Service history,” said Special Agent in Charge Shawn Bradstreet, who praised the operation’s scale and coordination.
DOJ Credits Tether for Cooperation
In addition to Coinbase, the Department of Justice acknowledged Tether for its cooperation in freezing the illicit funds and helping secure the seizure order. The operation highlights the growing role of public-private partnerships in combatting crypto-enabled financial crimes.
The seizure marks a significant milestone in U.S. law enforcement’s efforts to clamp down on organized crypto fraud and human trafficking operations using digital assets.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/coinbase-assists-secret-service-in-record-225m-crypto-seizure-linked-to-fraud/