Coinbase shared on Tuesday that it helped the U.S. Secret Service seize $225 million worth of allegedly stolen cryptocurrency in a case that stretches back to 2023. The crypto exchange said its team helped trace the digital funds and identify possible victims, calling its role a “key” part of the investigation.
The seized funds were mostly in USDT, a type of digital coin known as a stablecoin, which is designed to stay equal in value to the U.S. dollar. Back in December 2023, Tether, the company behind USDT, froze about $225 million in crypto after being alerted that the money might be linked to criminal activity.
The wallets holding the funds were believed to be connected to a human trafficking group running a scam called “pig butchering,” where scammers trick people into fake online relationships and convince them to send money.
Last week, the U.S. Secret Service, the FBI, and the U.S. Attorney’s Office officially filed an order to take control of the funds. Coinbase said it worked closely with investigators, using blockchain tools to track the movement of the crypto and review account activity linked to its own platform. This helped law enforcement figure out where the funds had gone and who had been affected.
“Coinbase team members conducted a multi-day effort to trace millions in cryptocurrency transactions back from illicit wallets to the sends from our platform and analyze account activity to flag victims,” the company said in its statement.
U.S. Secret Service Special Agent in Charge Shawn Bradstreet said this was the largest crypto seizure in the agency’s history. The Department of Justice also thanked Tether for taking quick action to freeze the funds early in the investigation.
Tether responded by saying the move shows its dedication to fighting crime and supporting law enforcement. “As the scale and sophistication of crypto-related crime continue to evolve, Tether’s commitment to safeguarding users and supporting global enforcement efforts has set a new benchmark for financial security in the digital asset ecosystem,” the company said in a statement. Tether also shared that it has frozen more than $2.7 billion in crypto linked to illegal activity so far.
Coinbase ended its announcement by encouraging anyone who believes they were tricked by the scam to file a report with the FBI’s Internet Crime Complaint Center, also known as IC3. This could help victims get back some of their stolen funds.
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