U.S. Secret Service tracks $400M in crypto from online scams
Secret Service fights crypto crime
Over the past decade, the U.S. Secret Service’s Global Investigative Operations Center (GIOC) has become one of the key players in combating digital asset-related crime, recovering nearly $400 million in cryptocurrencies stolen through online scams and fraud.
A significant portion of the seized crypto is stored in one of the world’s largest government-controlled cold wallets, according to Bloomberg.
GIOC investigators rely on blockchain analytics, open-source intelligence, and digital forensics to expose criminal networks behind common fraud schemes such as romance-investment scams, sextortion, and fake trading platforms. In one case, a user was lured into investing through an app with a legitimate-looking interface and support, but the platform soon disappeared, along with the funds. A VPN glitch exposed the scammer’s IP address and led agents to the crypto wallet.
Global initiatives and law enforcement training
At the heart of the U.S. Secret Service’s global cryptocurrency strategy is Kali Smith, who has led training efforts for law enforcement agencies in over 60 countries. The agency focuses on jurisdictions with weak regulatory oversight and "citizenship-by-investment" programs, aiming to strengthen local capabilities in detecting and preventing financial cybercrime.
Recent workshops in Bermuda, known as a hub for digital assets, underscored growing concerns that crypto-friendly policies may attract bad actors. Officials discussed the need for modern investigative tools to keep pace with rapidly evolving financial technologies. Smith emphasized that many victims mistakenly assume cryptocurrency is inherently safe: “They think using Bitcoin means they’re protected. But that’s not the case.”
Case examples, damages, and industry collaboration
One sextortion case involving a teenager from Idaho led to a crypto wallet that had processed over $4.1 million across 6,000 transactions. The wallet was linked to a Nigerian passport, and the suspect was arrested in the United Kingdom.
Crypto scams have become the leading cause of cybercrime-related financial losses in the U.S. In 2024, Americans lost $9.3 billion to fraud. Cooperation with industry plays a vital role in recovering stolen assets—companies like Coinbase and Tether assist in freezing suspicious accounts, including one involving a $225 million USDT recovery tied to romance scams.
As threats continue to grow, the Secret Service is reinforcing international partnerships to stay aligned with the expanding digital economy.
Read also: Europol shuts down international crypto fraud network
