Coinbase claims ‘key role’ in Secret Service’s biggest-ever crypto seizure

Coinbase played a "key role" in assisting the U.S. Secret Service in the largest cryptocurrency seizure in the agency’s history, involving $225 million in crypto linked to investment scams. The Department of Justice filed to seize these funds on June 18, 2025, which were recovered through a coordinated investigation involving the Secret Service, FBI, and U.S. Attorney’s Office.

Coinbase’s contribution included identifying scam victims, analyzing blockchain transaction flows, and helping build the legal case to seize the stolen crypto. Between February 26 and 29, 2024, Coinbase traced millions in crypto transactions to illicit wallets and flagged over 130 Coinbase customers who lost approximately $2.3 million to the scam. The investigation also traced some frozen funds to 140 accounts on the crypto exchange OKX, many linked to individuals held at scam compounds in Southeast Asia.

Stablecoin issuer Tether also played a crucial role by freezing 39 wallet addresses holding the stolen funds, primarily in USDT, and subsequently burning those tokens to remove them from circulation. The equivalent amount of USDT was reissued and transferred to a wallet controlled by the Secret Service, demonstrating transparency in the law enforcement process.

This operation highlights the growing collaboration between cryptocurrency companies like Coinbase and law enforcement agencies to combat crypto-related fraud and recover stolen assets, setting a precedent for future efforts in the crypto ecosystem.

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