U.S. Secret Service Seizes $400M in Crypto to Combat Digital Fraud

The U.S. Secret Service, traditionally tasked with protecting presidents, has emerged as a key player in combating cryptocurrency-related crime. According to a recent Bloomberg report, the agency's Global Investigative Operations Center (GIOC) has confiscated nearly $400 million in digital assets over the past decade. Much of these seized assets are stored in a single cold wallet, now considered one of the most valuable in the world.

As crypto-related scams surge, the U.S. faces mounting losses. FBI data reveals that Americans lost $9.3 billion to crypto fraud in 2024 alone, with older victims suffering nearly $2.8 billion in damages due to investment schemes, fake platforms, and extortion. The GIOC employs blockchain analysis, subpoenas, and open-source intelligence to trace illicit transactions and recover funds.

Led by attorney Kali Smith, the unit also trains law enforcement worldwide, focusing on jurisdictions with weak regulatory oversight. A recent workshop in Bermuda highlighted the challenges faced by crypto-friendly regions. The agency collaborates with major industry players like Coinbase and Tether, which played a crucial role in recovering $225 million in USDT linked to romance-investment scams.

Patrick Freaney, head of the Secret Service’s New York field office, emphasized the agency’s legacy of financial investigation, stating, “We’ve been following the money for 160 years.” Through its growing expertise in crypto tracing and partnerships with the private sector, the Secret Service is positioning itself as a global leader in tackling digital asset crime.