Secret Service Seizes $400M in Crypto, Cold Wallet Among World's Largest
The United States Secret Service has quietly amassed one of the world's largest crypto cold wallets, seizing nearly $400 million in digital assets over the past decade. The agency's Global Investigative Operations Center (GIOC) has been tracking funds through open-source tools, blockchain analysis, and patience, according to Bloomberg.
According to Jamie Lam, an investigative analyst with the US Secret Service, the agency's crypto trove results from a string of investigations into scams. Scammers often lure targets into seemingly legitimate crypto investment platforms, promising initial profits before vanishing with deposits. "That's how they do it," Lam said. "They'll send you a photo of a really good-looking guy or girl. But it's probably some old guy in Russia."
Identifying Fraudsters
The Secret Service's crypto team uses domain records, blockchain transactions, and VPN slip-ups to identify fraudsters. In one case, a cryptocurrency payment led investigators to another wallet. In another instance, a brief VPN failure exposed an IP address, helping agents piece together the scam's digital trail.
At the helm of the Secret Service's crypto strategy is Kali Smith, who directs a team that has trained officials in over 60 countries to unmask online financial crimes. "Sometimes after just a week-long training, they can be like, 'Wow, we didn't even realize that this is occurring in our country,'" Smith said.
Recovering Stolen Crypto
The agency's work has uncovered scams ranging from romance-investment schemes to sextortion cases. One investigation involved an Idaho teenager who sent a nude photo to an online stranger, only to be extorted $300 twice before going to the police.
Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport. British police arrested the suspected extortionist when he arrived in Guildford, England, where he remains in custody pending extradition.
Crypto-Related Scams on the Rise
Crypto-related scams have become the top driver of US internet crime losses. Americans reported $9.3 billion stolen in crypto fraud in 2024, more than half of the $16.6 billion in total internet crime losses that year, according to FBI data.
Meanwhile, the first half of 2025 has seen over $2.47 billion in losses due to hacks, scams, and exploits, representing a nearly 3% increase compared to the $2.4 billion stolen in 2024.
Cooperation from Industry Players
Recovering stolen crypto often depends on cooperation from industry players. Coinbase and Tether have acknowledged assisting in high-profile cases by analyzing transactions and freezing wallets. One of the largest single recoveries involved $225 million in USDt (USDT) linked to romance scams.
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