Coinbase aids federal agents in seizing $225 million in 'stolen' crypto, exchange says

Cryptocurrency exchange Coinbase said Tuesday that it "played a key role" in helping the U.S. Secret Service in its efforts to seize $225 million in "stolen" crypto as part of a case dating as far back as 2023. 

Last week, the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Attorney’s Office filed an order to seize roughly $225 million in crypto from alleged fraudsters. In December 2023, Tether froze approximately $225 million worth of USDT held in self-custodial wallets, which at the time were said to be linked to a human trafficking group responsible for a "pig butchering" romance scam. 

Coinbase, one of the largest crypto companies in the U.S., said it helped trace the stolen funds onchain and identify victims eligible for restitution.

The U.S. Secret Service Special Agent in Charge Shawn Bradstreet said last week that the seizure marked "the largest cryptocurrency seizure in U.S. Secret Service history." The Department of Justice also thanked Tether for its proactive assistance in this investigation.

Tether, which in the past has confronted reputational issues related to its USDT stablecoin, was quick to celebrate the win last week. "This action builds on Tether’s broader efforts to lead the digital asset industry in compliance, transparency, and global crime prevention," the world's largest stablecoin issuer said in a statement. "To date, Tether has frozen and blocked over $2.7 billion in USDT connected to illicit activity."

In its statement from Tuesday, Coinbase detailed exactly how it aided the U.S. Secret Service in its investigation. "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," the company said.

Coinbase noted that anyone who believes themself a victim can file a claim with the FBI Internet Crime Complaint Center.