🚨 $225 Million Seized in Crypto Scam Crackdown
On June 18, the U.S. Department of Justice filed to seize over $225 million in crypto, largely in Tether (USDT), linked to major pig butchering scams—a type of fraud involving psychological manipulation and fake investment platforms.
According to Shawn Bradstreet of the U.S. Secret Service (USSS), this is the largest cryptocurrency seizure in the agency’s history.
🔍 Coinbase Played a "Key Role"
Coinbase revealed in a recent blog post that it was instrumental in the investigation. Between Feb. 26–29, 2024, Coinbase worked in a coordinated effort with the USSS and other exchanges to:
- Analyze on-chain activity
- Identify scam victims
- Trace illicit wallets
- Build a legal case for seizure
“Our efforts helped the USSS identify over 130 scam victims—Coinbase customers—with $2.3 million in losses,” — Coinbase
🧊 Funds Traced to OKX and Scam Compounds
Coinbase reported that 140 accounts involved in the scam were hosted on the OKX exchange, many registered under individuals detained at scam compounds in Southeast Asia—a disturbing link to organized crypto fraud networks.
🔥 Tether Freezes and Burns $225M USDT
The seized funds were primarily in Tether (USDT), which was frozen across 39 wallet addresses in 2023. Later, Tether:
- Burned the compromised tokens, permanently removing them from circulation
- Reissued an equal amount and transferred them to a Secret Service-controlled wallet
“This process was visible on-chain, showing how blockchain transparency can aid law enforcement.” — Coinbase
🌍 Global Trend: Crypto Seizures on the Rise
This operation follows other major global crypto crackdowns:
- Australia: Seized $2.6M in BTC linked to a 2013 heist
- Germany: Confiscated $38M from laundering platform “eXch”
- Tether: Continues to assist in freezing wallets used in criminal activity
🔐 Lessons in Crypto Security
This historic seizure underscores how blockchain transparency, exchange compliance, and collaborative law enforcement can effectively combat cybercrime.
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