Coinbase Played “Key Role” in Secret Service’s Largest-Ever Crypto Seizure
Cryptocurrency exchange Coinbase says it played a “key role” in a major investigation by the U.S. Secret Service that led to the largest cryptocurrency seizure in the agency’s history, totaling $225 million allegedly linked to crypto investment scams.
On June 18, the U.S. Department of Justice (DOJ) filed to seize the funds recovered by the Secret Service. According to Agent in Charge Shawn Bradstreet, the operation targeted a network of “pig butchering” scammers, marking the largest crypto seizure ever made by the Secret Service.
In a blog post published Tuesday, Coinbase revealed it collaborated with the Secret Service and several other exchanges during an “investigative sprint” in 2024 to trace blockchain transactions, identify victims, and help build the case to seize illicit assets.
Coinbase Helped Identify Over 130 Victims
Between February 26 and 29, 2023, Coinbase says its investigative team tracked millions of dollars in crypto transfers to suspicious wallets and used subpoena data to pinpoint victims.
“This blockchain analysis and subpoena records production allowed the USSS to identify more than 130 Coinbase customers who were unknowingly defrauded, representing $2.3 million in losses,” the company wrote.
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
The investigation also linked some of the frozen funds to 140 accounts on crypto exchange OKX, many of which were held in the names of individuals reportedly detained in scam compounds in Southeast Asia.
Tether Burned and Reissued $225M in USDT
Stablecoin issuer Tether, which was also praised by the DOJ for its cooperation, froze 39 wallet addresses holding the $225 million in USDT. These tokens were later burned and reissued, with the new USDT transferred to a wallet controlled by the Secret Service.
“This process was visible on-chain, offering a real-time example of how crypto can enhance transparency in law enforcement operations,” Coinbase noted.
Burning tokens involves sending them to a wallet that cannot be accessed, effectively removing them from circulation.
Global Crypto Crackdowns Continue
This U.S. case is part of a broader global crackdown on crypto-related crimes.
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In May, Australian authorities seized nearly 25 BTC (worth $2.6 million) allegedly tied to a 2013 French exchange hack.
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In February, German police seized €34 million ($38M) in crypto from eXch, a platform allegedly used to launder funds linked to the Bybit $1.4 billion hack.
The case highlights how blockchain’s traceability and transparent nature can help law enforcement trace and recover stolen assets. Coinbase emphasized that it remains committed to working with authorities to fight fraud and protect crypto users worldwide.
