25-6-2025 – The US Secret Service, bolstered by the expertise of cryptocurrency exchange Coinbase, has struck a significant blow against financial crime, seizing a staggering $225 million in digital assets tied to so-called “pig butchering” scams. The Department of Justice, on 18 June, announced this haul as the largest cryptocurrency seizure in the agency’s history, a triumph credited to meticulous collaboration with industry players like Coinbase and stablecoin issuer Tether.
Coinbase traces funds, identifies over 130 scam victims
Coinbase, in a detailed blog post published on Tuesday, revealed its pivotal role in a 2024 “investigative sprint” alongside the Secret Service and other exchanges. Over four intensive days—from 26 to 29 February last year—their team meticulously traced millions in cryptocurrency transactions, pinpointing illicit wallets and suspicious account activity. This forensic blockchain analysis, coupled with subpoenaed records, enabled authorities to identify over 130 Coinbase customers who had unwittingly fallen prey to fraud, collectively losing $2.3 million. The exchange’s efforts also uncovered connections to 140 accounts on the OKX platform, many linked to individuals ensnared in scam compounds across Southeast Asia.
Tether burns $225M in USDT and reissues to US authorities
The operation’s success hinged on the transparency and traceability inherent in blockchain technology. Tether, a key ally in the investigation, froze 39 wallet addresses holding $225 million, predominantly in its USDT stablecoin, in 2023. These tokens were subsequently burned—permanently removed from circulation by transfer to an inaccessible wallet—before an equivalent amount of new USDT was issued and handed to a Secret Service-controlled wallet. Coinbase highlighted this process as a striking demonstration of how cryptocurrencies can enhance accountability in law enforcement.
Global trend: Crypto enforcement intensifies
This seizure is part of a broader global crackdown on illicit crypto activities. In May, the Australian Federal Police confiscated nearly 25 Bitcoin, valued at over $2.6 million, allegedly tied to a 2013 theft of 950 Bitcoin from a French exchange. Earlier, in February, German authorities seized 34 million euros ($38 million) in digital assets from the eXch platform, implicated in laundering funds from a $1.4 billion hack of the Bybit exchange. These efforts underscore a growing resolve among international authorities to combat the misuse of cryptocurrencies, leveraging the very transparency of blockchain to dismantle sophisticated criminal networks.
