US Secret Services Crypto Seizures Reach $400 Million Amid Growing Digital Fraud Concerns

The Global Investigative and Operations Center of the U.S. Secret Service (GIOC) has seized approximately $400 million in digital assets over the past few years, according to Bloomberg’s sources.

A significant portion of these assets is stored in a single cold wallet, making it one of the largest in the world.

The agency developed its crypto fund as a result of various investigations. GIOC specialists tracked funds using open-source tools, blockchain analysis, and other methodologies.

Frauds related to digital currencies account for a substantial portion of internet crime losses in the U.S. In 2024, Americans suffered $9.3 billion in losses from crypto scams, representing more than half of the total $16.6 billion in damages.

A considerable part of these losses affects elderly individuals, who collectively lost nearly $2.8 billion, primarily through fraudulent investment websites.

In these schemes, victims are lured in by promises of lucrative cryptocurrency investments via online interactions. Initial deposits yield modest but consistent returns. Once an enthusiastic client increases their investment—often using borrowed funds—the platform shuts down, causing the client’s balance to vanish.

This scam is linked to GIOC’s largest seizure in history, which involved over $225 million in USDT stablecoins from Tether.

In one instance, investigators identified the domain name registered by the scam’s organizers after a brief VPN disruption.

In another real case, an unknown assailant blackmailed a teenager in Idaho, threatening to send intimate photos to relatives. The victim paid $300 twice before contacting the police.

GIOC experts reconstructed the extortion using blockchain data, screenshots, and receipts, employing a proxy payer. They ultimately traced the account linked to a Nigerian passport, which processed around 6,000 transactions totaling nearly $4.1 million. The suspect was arrested by UK authorities upon arrival in the country.

According to Bloomberg, GIOC relies on assistance from partners within the crypto industry for operations aimed at recovering stolen digital assets. Companies like Coinbase and Tether have publicly confirmed their cooperation with the agency in several recent cases, helping with information provision and wallet freezes.

Notably, in February, U.S. authorities managed to return $8.2 million to victims of fraudulent crypto platforms, with an additional $7 million returned in March.