US Secret Service Seizes $400M in Crypto from Scam Cases
Key Takeaways
- US Secret Service has seized nearly $400 million in cryptocurrency over the past decade, creating one of the world’s largest cold wallets
- Advanced investigation methods using blockchain analysis, VPN tracking, and open-source tools to trace scammers
- Crypto scams account for over 50% of total US internet crime losses with $9.3 billion in 2024
- International cooperation expanded with training provided to over 60 countries on detecting online financial crimes
- Successful recovery depends on cooperation from major crypto exchanges and service providers
The US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, creating one of the world’s largest cryptocurrency cold wallets by dismantling scams through blockchain analysis and VPN missteps.
Massive Crypto Treasury From Scam Investigations
Over the span of ten years, the US Secret Service has quietly accumulated nearly $400 million in digital assets. This has turned the agency into an unlikely owner of one of the world’s largest cryptocurrency cold wallets, according to sources familiar with the operations.
The agency’s Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, according to Jamie Lam, an investigative analyst with the US Secret Service, who reportedly shared insights with law enforcement officials in Bermuda.
In many cases, scammers set up fake investment platforms to lure victims. These platforms often show early profits to build trust. Once victims invest larger sums, the websites disappear along with their funds.
“That’s how they do it,” Lam explained. “They’ll send you a photo of a really good-looking guy or girl. But it’s probably some old guy in Russia.”
Blockchain Analysis Exposes Crypto Scams
Lam’s team connects the dots using domain registrations, blockchain transaction trails, and even small VPN missteps. In one case, a single crypto transfer exposed a network of linked wallets. In another, a scammer’s VPN briefly disconnected, revealing a real IP address that helped agents track the perpetrator.
Leading the agency’s international crypto crime strategy is Kali Smith. She oversees a training program that equips law enforcement in more than 60 countries with digital investigation skills. The team has focused efforts on regions with lax regulatory oversight or where residency-by-investment programs are exploited by fraudsters.
“Sometimes after just a week of training, local authorities realize these scams were happening right under their noses,” Smith said.
The cases vary—from fake investment pitches to sextortion schemes. In one particularly disturbing case, an Idaho teenager was blackmailed after sending a nude photo to a stranger online. The scammer extorted her twice for $300 before she contacted the police. Analysts followed the funds and discovered another teen who had been coerced into acting as a money mule. That trail led to a wallet linked to $4.1 million in transactions under a Nigerian passport.
The suspect was later arrested by British police upon arrival in Guildford, England. He remains in custody, awaiting extradition.
Crypto Scams Lead Losses
Crypto scams have now become the leading cause of financial loss in US internet crime. In 2024, Americans reported $9.3 billion stolen through crypto fraud. This figure made up more than half of the $16.6 billion in total reported internet crime losses, according to FBI data.
The trend has continued into 2025. In just the first six months, over $2.47 billion in crypto has been lost to hacks, scams, and exploits. This represents a nearly 3% increase from the same period in 2024.
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 linked to romance scams.
