Coinbase has revealed its central role in assisting the U.S. Secret Service in what is now the largest cryptocurrency seizure in the agency’s history. The $225 million operation targeted an international pig butchering scam network, in which fraudsters used elaborate social engineering tactics to defraud victims under the guise of fake investment opportunities.
According to a June 18 filing by the Department of Justice, the seizure was the result of months of cooperation between federal agents and crypto firms. In a blog post, Coinbase said it played an active part in the 2024 investigative sprint—an initiative focused on tracing the flow of stolen assets, conducting blockchain analysis, and preparing legal evidence to support the asset freeze and recovery.
Shawn Bradstreet, Agent in Charge at the Secret Service, called the bust “historic in scale,” emphasizing the critical role of blockchain forensics in modern law enforcement. Coinbase framed the operation as an example of how regulated exchanges can be active partners in tackling crypto-based financial crime.
Coinbase Traces Millions and Identifies Victims
Coinbase’s investigations team worked intensively over a four-day period in February 2024, analyzing subpoenaed blockchain data to track suspicious activity. Their forensic work uncovered over $2.3 million in losses spread across more than 130 Coinbase customers—many of whom were unaware they had fallen victim to a global scam network.
The scams, believed to originate from Southeast Asian trafficking compounds, typically lured victims via social media or messaging apps. Once trust was gained, victims were persuaded to transfer crypto assets into fraudulent investment platforms. Coinbase also discovered that at least 140 linked wallets were connected to OKX accounts, many of which were registered under the names of detained individuals forced to work in scam operations.
This cross-platform forensic mapping highlights how blockchain transparency, when combined with strong KYC compliance, can expose deeply hidden criminal infrastructures.
Tether Burned Millions in Frozen USDT After DOJ Action
In a rare but powerful show of cooperation, stablecoin issuer Tether responded to law enforcement requests by freezing 39 wallets that collectively held the stolen $225 million in USDT. After the freeze, Tether carried out a full token burn—permanently removing the assets from circulation.
Shortly after, the same amount of USDT was reissued and transferred directly to a Secret Service-controlled wallet. This seamless handoff served as a case study in how blockchain-based financial systems can enable real-time asset recovery—openly visible to anyone on-chain.
This action adds to a growing track record of international crypto seizures. Earlier this year, German authorities confiscated over $38 million in crypto linked to laundering activities. In May, Australia’s federal police seized 25 Bitcoin tied to a long-unresolved exchange theft from 2013.
Quick Facts
- Coinbase helped the U.S. Secret Service seize $225 million in stolen crypto, marking the largest digital asset seizure in agency history.
- More than 130 Coinbase customers were victims, with suspicious wallets traced to OKX accounts linked to Southeast Asian scam operations.
- Tether froze and burned the stolen USDT before reissuing it to a Secret Service wallet, facilitating transparent asset recovery.
- The case showcases how blockchain forensics and exchange cooperation are becoming essential tools in global crime enforcement.
