Coinbase Teams Up With Secret Service to Seize $225M in Stolen Crypto

Coinbase announces partnership with U.S. Secret Service in major cryptocurrency seizure operation targeting pig butchering scams.

The collaboration resulted in $225 million USDT recovery, with the victim restitution process now underway through joint law enforcement efforts.

Joint Investigation by Coinbase Recovers $225M from Crypto Scam

The U.S. Secret Service managed to seize $225 million in USDT in pig butchering scams. This represented the biggest cryptocurrency seizure by the authorities linked to investment scams on the internet.

39 wallet addresses of the stolen funds were seized by Tether at the close of 2023, which had been traced to 140 accounts on the OKX exchange.

Several OKX accounts were in the names of victims trafficked into Southeast Asian scam compounds. It reflects the human trafficking aspect of pig butchering attacks.

Coinbase participated in a joint investigation sprint with the Secret Service between February 26-29, 2024, along with several other crypto exchanges.

Coinbase team members worked directly with Secret Service agents in a multi-day effort to trace millions in crypto transactions from illicit wallets back to platform transactions.

The blockchain analysis and subpoena record production allowed authorities to identify more than 130 Coinbase customers.

All these customers were unknowingly defrauded, representing $2.3 million in total losses. Coinbase stated:

These identified victims comprised only a fraction of the thousands likely affected across the broader cryptocurrency ecosystem through similar fraudulent schemes.

Victim Restitution Process Launches Through FBI Complaint Center

The Secret Service has officially seized the $225 million and initiated a public campaign to return funds to scam victims through the FBI Internet Crime Complaint Center.

Victims must provide proof of fund transfers to scam-related wallets, typically by downloading transaction history from their cryptocurrency platforms.

Most of the victims employed Coinbase for their transactions, so customer support issues involving account access and retrieval of transaction history were on the rise.

Tether destroyed $225 million of on-chain locked USDT during the seizure. The equivalent amount of new USDT minted and moved into Secret Service-controlled wallets. The money will be in government custody until delivery to confirmed victims.

Coinbase published guidance helping customers access and provide the required transaction history records.

The exchange continues to actively cooperate with law enforcement to offer victims the required information and support throughout the restitution process. Coinbase noted:

“This process was visible on-chain, offering a real-time example of how crypto can enhance transparency in law enforcement operations.”

US Expands Crypto Enforcement Operations Targeting Criminal Networks

The Secret Service seizure forms part of broader U.S. government efforts targeting cryptocurrency-enabled criminal activities across multiple fronts.

On 5 June 2025, the authorities seized 145 domains and amounts of unreported crypto belonging to BidenCash.

Notably, this is a dark web market offering millions of stolen credit card numbers and personal information.

BidenCash had more than 117,000 users and made more than $17 million in revenue before law enforcement shut it down.

Law enforcement redirected seized domains to government-controlled servers while seeking court approval to obtain related crypto assets through coordinated enforcement actions.

In March 2025, the United States government formally established a Strategic Bitcoin Reserve. The Digital Asset Stockpile, blending Bitcoin and other digital asset reserves.

The policy action is a reflection of strategic management tactics to leverage government holdings of cryptocurrency in international financial systems.

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