Coinbase And Secret Service Team Up In $225 Million Crypto Sting

Cryptocurrency firms and law enforcement teamed up this month in what could be the biggest crypto haul in US Secret Service history. On June 18, the Department of Justice moved to seize over $225 million in tokens linked to pig-butchering scams.

This effort relied on blockchain tracing and quick action by exchanges and a stablecoin issuer to lock down funds that flowed through multiple platforms.

Coinbase Joins Secret Service Effort

According to Coinbase, its investigators worked alongside the US Secret Service during a focused sprint in early 2024. From February 26 to February 29, they tracked millions in suspect transfers and flagged transactions tied to illicit wallets.

Based on reports, more than 130 Coinbase customers were hit by scams, collectively losing about $2.3 million. Agents then used subpoenaed records to tie those on-chain flows back to victim accounts.

Coinbase also noted that some of the seized funds wound up in roughly 140 accounts at OKX, many held by people detained in scam compounds in Southeast Asia.

Coinbase helped drive a major law enforcement win: the U.S. Secret Service has seized $225M in stolen crypto tied to pig butchering scams—and is returning funds to victims. If you think you were affected, you may be eligible for restitution. Learn more: https://t.co/0VirllyzM7

— Coinbase Support (@CoinbaseSupport) June 24, 2025

Tether Freezes And Burns USDT

According to Tether, 39 wallet addresses were frozen after the DOJ presented evidence of theft. Those wallets held about $225 million in USDT. Tether then performed a burn, sending tokens to an inaccessible address so they could never be spent again.

At the same time, an equal amount of fresh USDT was minted and sent to a wallet under Secret Service control. Observers could watch that swap on-chain, showing how stablecoins can be pulled out of circulation when needed to cut off illicit actors.

According to information from the DOJ, this move represents the largest crypto seizure ever attributed to the Secret Service. It comes after a surge in pig-butchering scams—long-con frauds where operators befriend victims online and convince them to invest in fake schemes.

Law enforcement described this case as a landmark in fighting crypto crime, stressing that on-chain data was critical in pinpointing stolen funds scattered across different exchanges.

Beyond the US, similar actions have popped up around the globe. In May, the Australian Federal Police seized nearly 25 Bitcoin—worth about $2.6 million—from suspects tied to a 2013 hack of a French exchange.

And in February, German authorities blasted 34 million euros ($38 million) in crypto linked to a massive Bybit breach. Analysts say these joint efforts send a clear message: crypto doesn’t equal anonymity.

Investors ought to stay alert about unsolicited investment offers. Security teams on exchanges will keep sharpening blockchain analysis tools to catch illicit flow faster.

Featured image from AP/Julia Nikhinson, File, chart from TradingView