Over the last decade, the US Secret Service has reportedly seized nearly $400 million in cryptocurrency assets as part of its ongoing fight against online fraud.
The agency’s Global Investigative Operations Center (GIOC) has played a crucial role in tracking illicit funds, utilizing blockchain analysis, open-source tools, and thorough investigative methods.
Tether and Coinbase Help US Agents Target Crypto Fraud
According to a Bloomberg report, a significant portion of these seizures stems from crackdowns on fraudulent investment platforms.
In these schemes, victims are lured into believing they are profiting from legitimate crypto investments, only for the platforms to vanish with their funds.
Meanwhile, the Secret Service has worked closely with major industry players, such as Coinbase and Tether, to recover stolen funds. These companies provide blockchain insights and assist in freezing suspicious wallets.
For example, a major operation resulted in freezing $225 million in USDT, linked to a romance-investment scam. These schemes often target older individuals, who were disproportionately affected in 2024.
Tether’s CEO, Paolo Ardoino, emphasized the company’s commitment to transparency and collaboration with law enforcement. He stated that Tether is setting the standard for compliance in the digital asset sector.
“We are setting the standard for compliance in digital assets and leading efforts to ensure stablecoins are not misused by bad actors,” he added.
In 2024, Americans reported $9.3 billion in crypto-related scam losses, making up more than half of the year’s total internet crime losses.
However, despite the scale of reported fraud, data shows a declining share of crypto transactions tied to illicit activity.
TRM Labs reported that global crypto transaction volume surged to $10.6 trillion last year, up 56% from 2023. Meanwhile, illicit activity fell to $45 billion—just 0.4% of all transactions, down from 0.86% the previous year.
“The largest categories of illicit activity on the blockchain remained largely the same as in 2023, including Scam and Fraud (24% of illicit volume), Sanctions (33% of illicit volume), and Blocklisted (29% of illicit volume),” TRM Labs explained.
While the decline in illicit transactions reflects stronger enforcement and security measures, fraudsters continue to adapt. Many exploit vulnerabilities in decentralized finance systems, blockchain protocols, and emerging technologies.
In response, the Secret Service has ramped up its efforts globally. The agency is providing training to prosecutors and investigators in over 60 countries to help combat crypto-related crime in high-risk jurisdictions.
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