Consumer Protection Tuesday: How Coinbase Helped the Secret Service Seize $225M in Stolen Crypto

In one of the largest law enforcement seizures of crypto tied to online investment scams, the U.S. Secret Service (USSS) has successfully taken control of $225 million in USDT stolen through “pig butchering” scams—and has begun the process of returning those funds to victims.

Coinbase played a key role in this landmark operation, supporting the investigation, tracing onchain funds, and helping identify victims eligible for restitution.

How We Got Here

In late 2023, Tether froze 39 wallet addresses holding $225 million in USDT that were tied to pig butchering scams—long-term fraud schemes that typically begin with fake romantic or business relationships and end in devastating financial losses.

The USSS traced the frozen funds back to 140 accounts at the exchange OKX, many of which were held in the names of individuals trafficked into scam compounds in Southeast Asia. Between February 26–29, 2024, Coinbase and several other exchanges joined a joint investigative sprint with the USSS to identify scam victims, analyze onchain flows, and help build the case for seizure.

Sitting alongside USSS agents, Coinbase team members conducted a multi-day effort to trace millions in cryptocurrency transactions back from illicit wallets to the sends from our platform and analyze account activity to flag victims for USSS outreach. 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. These victims were just a fraction of the thousands likely affected across the broader crypto ecosystem.

What Happens Now

The USSS has officially seized the $225 million and launched a public campaign to return the funds to scam victims. Individuals who believe they were affected can now submit a claim directly to the FBI Internet Crime Complaint Center at https://www.ic3.gov with the code “BT06182025” in the narrative of your complaint.

To verify eligibility, victims must provide proof that they sent funds to scam-related wallets—typically by downloading their transaction history from the crypto platform they used. Many victims used Coinbase, and we’re already seeing an increase in customer support inquiries related to account access and transaction records.

To support this effort, Coinbase has:

• Published guidance to help customers access and submit transaction history

• Worked closely with law enforcement to ensure victims get the information and support they need

Transparency in Action

As part of the seizure, Tether burned the $225 million in frozen USDT onchain. The equivalent amount of new USDT was then issued and transferred to a USSS-controlled wallet, where it will be held until distribution to verified victims.

This process was visible onchain, offering a real-time example of how crypto can enhance transparency in law enforcement operations. 

Helping Victims, Reinforcing Trust

Pig butchering scams are devastating and often tied to human trafficking networks. But cases like this show how blockchain forensics, public-private cooperation, and trusted platforms like Coinbase can help reverse the damage.

If you believe you may be a victim of a pig butchering scam:

1. Download your transaction history from your Coinbase account – see Help Center.

2. Follow USSS guidance to file a claim.

3. Contact Coinbase Support if you need help recovering your account or verifying transactions.

We’ll continue doing everything we can to protect our users—and support the authorities working to dismantle criminal networks abusing crypto.

Passionate about protecting users and shaping the future of responsible crypto? Explore open roles on our Security Engineering, Privacy, and Risk teams.