Secret Service Seizes $400M in Crypto Stored in Giant Cold Wallet
The Secret Service crypto seizure effort has quietly led to one of the world’s largest cold-storage wallets. Over the past ten years, the US Secret Service has seized nearly $400 million in cryptocurrencies, Bloomberg recently reported.
How the Secret Service crypto seizure Happened
The Global Investigative Operations Center (GIOC) of the Secret Service led the charge. They used open-source blockchain tools, domain tracking, and simple patience to track illicit funds. Jamie Lam, an investigative analyst, explained the process during a talk with police in Bermuda.
The agency’s crypto haul is stored mostly in a single cold wallet—safe from online threats. Much of it comes from scams that trick victims into fake investment platforms. Many targets believe they are making money, only to watch the site vanish overnight.
Blockchain Trails and VPN Errors Reveal the Truth
Scam artists often hide behind fake profiles and VPNs. But sometimes, one mistake is all it takes. Lam’s team used blockchain tracking and domain records to trace money. In one case, a short VPN failure exposed an IP address. This helped agents find a scammer’s wallet and follow the digital trail.
Training Other Countries to Fight Crypto Crime
Kali Smith leads the Secret Service’s crypto strategy. Her team has trained law enforcement in over 60 countries. The goal is to expose online scams, especially in regions with weak regulations or citizenship-for-sale programs.
Smith said after only a week of training, officials often realize how widespread these crimes are. The results include busting romance scams, sextortion cases, and even money laundering by teens tricked into acting as money mules.
In one case, a teen from Idaho was extorted after sharing a private photo. The team tracked crypto payments through another victim, leading to an account with over $4 million in transactions linked to a Nigerian passport. The suspect was caught in the UK and now awaits extradition.
Crypto Scams Now Lead US Internet Crime Losses
According to the FBI, crypto scams topped the list of internet fraud in 2024. Americans lost $9.3 billion through crypto scams, more than half of the year’s $16.6 billion total online crime losses.
The first half of 2025 hasn’t been better. Losses from hacks, fraud, and exploits already top $2.47 billion—slightly more than the same period in 2024.
Industry Help Is Key to Recovering Stolen Crypto
Recovering lost crypto depends heavily on cooperation. Companies like Coinbase and Tether have helped track and freeze fraudulent accounts. One of the biggest wins was retrieving $225 million in USDT linked to romance scam operations.
