In a groundbreaking collaboration, Coinbase has partnered with the U.S. Secret Service to recover $225 million in stolen USDT. This marks one of the largest cryptocurrency seizures linked to online investment scams. This operation, the Coinbase $225M seizure, highlights the growing role of blockchain analysis and law enforcement cooperation. Together, they combat sophisticated cybercriminal networks, particularly those behind “pig butchering” scams.
Joint Investigation Recovers $225M from Pig Butchering Scams
The U.S. Secret Service successfully seized $225 million in USDT tied to pig butchering scams—a fraudulent scheme. In this scam, criminals lure victims into fake investments before stealing their funds. At the close of 2023, Tether froze 39 wallet addresses associated with the stolen funds. These funds were traced back to 140 accounts on the OKX exchange.
Disturbingly, several of these accounts were registered under the names of individuals trafficked into Southeast Asian scam compounds. This sheds light on the dark intersection of human trafficking and crypto-enabled fraud.
Between February 26-29, 2024, Coinbase joined forces with the Secret Service in a multi-day investigative sprint. They collaborated with other major crypto exchanges. This Coinbase $225M seizure exemplifies their ability to track illicit funds using blockchain analytics and subpoenaed transaction records.
This effort identified over 130 Coinbase customers who had unknowingly fallen victim to these scams. They represented $2.3 million in total losses. However, Coinbase emphasized that these victims are just a fraction of the thousands likely affected across the broader cryptocurrency ecosystem.
Victim Restitution Process Begins Through FBI Complaint Center
Following the seizure, the Secret Service launched a public campaign to return the recovered funds to victims through the FBI Internet Crime Complaint Center (IC3). Such efforts as the Coinbase $225M seizure are pivotal for restoring financial losses. Victims must provide proof of fund transfers to scam-related wallets. Typically, they do this by submitting transaction histories from their cryptocurrency platforms.
For many victims, this process involves downloading transaction records from exchanges like Coinbase . This leads to an uptick in customer support requests related to account access and retrieval of transaction data.
To assist users, Coinbase published detailed guidance on accessing and providing the required transaction history records. The exchange continues to actively cooperate with law enforcement. This ensures victims receive the necessary information and support throughout the restitution process.
Notably, Tether destroyed $225 million worth of on-chain locked USDT during the seizure. They minted an equivalent amount of new USDT into Secret Service-controlled wallets. These funds will remain in government custody, as part of the broader Coinbase $225M seizure strategy. This will continue until they are distributed to confirmed victims.
“This process was visible on-chain,” Coinbase noted, “offering a real-time example of how crypto can enhance transparency in law enforcement operations.”
Broader U.S. Efforts to Combat Crypto-Enabled Crime
The Secret Service’s seizure is part of a wider push by the U.S. government to target cryptocurrency-enabled criminal activities. On June 5, 2025, authorities seized 145 domains and undisclosed amounts of unreported crypto. These were linked to BidenCash, a dark web marketplace selling millions of stolen credit card numbers and personal information.
Before its shutdown, BidenCash boasted over 117,000 users and generated more than $17 million in revenue. Law enforcement redirected the seized domains to government-controlled servers. Meanwhile, they sought court approval to confiscate related crypto assets through coordinated actions.
In March 2025, the U.S. government took another significant step by establishing a Strategic Bitcoin Reserve —a digital asset stockpile. This blends Bitcoin and other cryptocurrencies. This initiative reflects strategic management tactics aimed at leveraging government-held crypto assets within the international financial system.
Transparency and Accountability in Crypto Enforcement
The Coinbase-Secret Service partnership underscores the potential for blockchain technology to enhance transparency in law enforcement operations. By tracing illicit transactions on-chain, authorities can identify and dismantle criminal networks more effectively.
However, challenges remain. Many victims of pig butchering scams may struggle to navigate the restitution process. This is especially true if they lack access to their transaction histories or face language barriers. Exchanges like Coinbase play a critical role in bridging this gap by providing educational resources and customer support.
Final Thoughts
The Coinbase $225M seizure represents a significant victory in the fight against crypto-enabled crime. This showcases the power of collaboration between private-sector players like Coinbase and government agencies like the Secret Service. As the U.S. expands its enforcement efforts—from targeting dark web markets to establishing a Strategic Bitcoin Reserve —the role of cryptocurrency in global finance continues to evolve.
While this operation demonstrates progress, it also highlights the need for continued vigilance and innovation in combating cybercrime. For victims of scams, the restitution process offers hope. However, it also underscores the importance of education and awareness in preventing future fraud.
