Coinbase, a prominent cryptocurrency exchange, played a pivotal role in the U.S. Secret Service’s largest cryptocurrency seizure in the history of the U.S. Secret Service, confiscating $225 million in Tether (USDT). This landmark operation successfully targeted a sophisticated “pig butchering” romance scam, highlighting the escalating effectiveness of public-private collaborations in disrupting illicit digital asset flows and large-scale financial fraud.
The Collaborative Crackdown on “Pig Butchering” Scams
The culmination of a complex investigation initiated in 2023 led to this significant seizure, executed through a warrant issued by the U.S. Secret Service, the Federal Bureau of Investigation (FBI), and federal prosecutors. The confiscated assets were unequivocally linked to a criminal enterprise orchestrating “pig butchering” scams—a pervasive form of financial fraud that, according to law enforcement, is frequently associated with international human trafficking operations.
Coinbase detailed its extensive involvement, with its dedicated analytical team spending multiple days meticulously tracing stolen cryptocurrency transactions. This intricate process included identifying illicit wallet addresses, cross-referencing them with user accounts on the platform, and actively assisting in the identification of victims for potential restitution.
Parallel to these efforts, Tether, the issuer of USDT, had already taken proactive measures. In December 2023, Tether successfully froze the 225 million USDT across 39 non-custodial wallets, having identified them as directly connected to the scheme’s orchestrators. The company reinforced its commitment to robust compliance and its ongoing battle against financial crime within the digital asset ecosystem, noting its cumulative efforts have resulted in blocking over $2.7 billion USDT linked to various illegal activities.
Future Challenges and Victim Resources
U.S. Secret Service Special Agent Shawn Bradstreet explicitly confirmed this operation represents the largest cryptocurrency confiscation in the agency’s history, underscoring the escalating challenge posed to law enforcement as “pig butchering” schemes continue to proliferate and increase in sophistication. For individuals who suspect they may have fallen victim to this or similar illicit schemes, Coinbase has advised filing a complaint through the FBI’s Internet Crime Complaint Center (IC3), an essential resource for reporting cybercrimes.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.