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.
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.
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.
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.
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
