Synopsis- The US Secret Service just pulled off a massive digital heist…legally. Agents have secretly seized nearly $400 million in cryptocurrency. This huge haul sits in one of the world’s largest government cold wallets. Bloomberg first reported the news this past Saturday. This was achieved by spanning a full decade of relentless investigation.
Tracking Digital Thieves
How did they do it? Agents patiently followed the money online. They used open-source tools and sharp blockchain analysis. Jamie Lam, a Secret Service analyst, explained their methods. She recently spoke to officials in Bermuda. Her team traced illicit funds meticulously. “That’s how they do it,” Lam stated about scammers. Criminals often send fake photos of attractive people. “But it’s probably some old guy in Russia,” Lam revealed.
Furthermore, digital trails betray criminals. Lam’s team studies domain records and blockchain transactions. They also exploit critical mistakes. For instance, one crypto payment revealed another criminal wallet. Similarly, a VPN failure exposed a scammer’s IP address. These slip-ups help agents connect the dots. Kali Smith leads the Secret Service’s global crypto strategy. Her team trains officials in over 60 countries. They focus on places with weak oversight. “Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realise that this is occurring in our country,'” Smith noted.
Scams and Extortion
The seized crypto came from numerous disturbing crimes. Agents uncovered romance scams and sextortion cases. One heartbreaking case involved an Idaho teenager. The teen sent a photo to an online stranger. Following this, the scammer demanded $300 twice. The teen paid before finally going to police. Moreover, analysts traced those extortion payments. They followed the money through a coerced American teenager. This teen acted as an unwitting money mule. The trail led to a wallet processing $4.1 million. This wallet is linked to a Nigerian passport. Ultimately, British police arrested the suspect in Guildford, England. He remains in custody awaiting extradition.
Crypto Fraud Becomes Top US Internet Crime
Crypto scams inflict massive financial damage. They now drive most US internet crime losses. Americans reported $9.3 billion stolen via crypto fraud in 2024. This exceeded half of all internet crime losses that year. The FBI provided these sobering statistics. Furthermore, 2025 losses continue climbing. The year’s first half saw over $2.47 billion lost. Hacks, scams, and exploits caused this damage. This represents a nearly 3% increase over 2024’s total. Recovering stolen crypto needs industry help. Companies like Coinbase and Tether assist law enforcement. They analyse transactions and freeze suspect wallets. Significantly, one recovery involved $225 million in USDT. This haul is linked directly to widespread romance scams.
A Decade of Digital Exploits
This $400 million seizure marks a major milestone. It results from countless investigations into cybercrimes. The Secret Service’s GIOC spearheaded this effort. Their work targeted investment fraud and darknet markets. Crucially, most seized assets sit offline in cold storage. This method prevents hacking attempts effectively. The Secret Service adapts its historic mission. Originally fighting counterfeit cash, it now tracks digital thieves. Its agents follow the money across the blockchain. Therefore, this massive crypto seizure demonstrates their evolving success. However, the battle against online fraud remains fierce. Criminals constantly develop new deceptive tactics.
Written By Fazal Ul Vahab C H
