Coinbase Helps Secret Service Track Down $225 Million in Stolen Crypto—Its Biggest Score Yet

Key Takeaways

• The DOJ recovered $225 million in stolen crypto with help from Coinbase and Tether.
• Tether froze the suspicious funds; Coinbase helped track and identify victims.
• The crypto was linked to pig butchering scams targeting hundreds of victims.

The U.S. Secret Service has seized $225 million worth of cryptocurrency in what’s being called one of the largest recoveries tied to pig butchering scams, a fast-growing form of crypto fraud that has cost victims billions globally.

Pig butchering scams typically involve con artists who spend weeks or months building fake romantic or business relationships with their targets.

Once trust is built, victims are persuaded to invest in what they believe are legitimate crypto platforms, only to see their money vanish.

Coinbase and Tether Play Key Roles in Historic Recovery

The operation was made possible thanks to two key players in the crypto space: Coinbase and Tether.

Tether moved quickly, freezing 39 wallet addresses holding $225 million in USDT after detecting suspicious activity linked to pig butchering schemes.

Early red flags suggested the funds could be tied to human trafficking operations as well.

“Tether’s work with the Department of Justice underscores our commitment to transparency, proactive engagement with law enforcement, and the protection of users across the digital asset ecosystem,” said CEO Paolo Ardoino.

Coinbase then stepped in to trace the stolen crypto across the blockchain. Their team tracked wallet activity, mapped transactions, and identified 130 users who collectively lost at least $2.3 million.

“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 shared.

The asset seizure followed a formal court order from the DOJ, Federal Bureau of Investigation (FBI), and U.S. Secret Service.

Pig Butchering Scams Surge

Pig Butchering scams have exploded in recent years, with crypto losses tied to pig butchering topping $5 billion in 2024, a 40% increase from the year before.

Over 400 suspected victims were identified in this case alone, with many more believed to be unreported.

The FBI and DOJ are now leading a restitution process, asking victims to submit transaction records for verification.

Recovered funds are being redistributed via a Secret Service-controlled wallet.

In response to the growing threat, U.S. agencies have ramped up public awareness campaigns, urging investors to stay cautious and avoid high-return promises that seem too good to be true.

With scammers getting more sophisticated, the crypto community—and regulators—are racing to keep up.