The US Secret Service has made significant strides in combating cryptocurrency-related crimes, recovering nearly US$400 million (approximately AU$614.68 million) in the last decade. A notable portion of these assets—mostly held in a singular cold-storage wallet—marks it as one of the largest in existence. The most considerable seizure was US$225 million (around AU$346 million) in Tether, linked to pervasive scams masquerading as romance investment schemes.
This impressive achievement is largely attributed to the Global Investigative Operations Center (GIOC), the Secret Service’s dedicated cybercrime unit. The GIOC employs blockchain analysis, open-source intelligence, and meticulous investigative techniques to trace illicit financial activities. By connecting wallet transactions, reviewing domain records, and utilising data from exposed IP addresses, the unit has effectively dismantled various fraudulent operations.
Criminals frequently employ social manipulation tactics to ensnare victims. One common strategy involves creating fraudulent yet professional-looking cryptocurrency investment websites, which often show initial gains before disappearing entirely. As noted by GIOC analyst Jamie Lam, the use of appealing online personas—often artificially created through manipulated photos—serves as a hook for unwitting targets.
“When they lure victims, they present themselves as attractive individuals, but it’s often some older person operating out of Russia,” Lam explained.
In a related effort, Kali Smith, the head of the agency’s cryptocurrency strategy, has coordinated training initiatives in over 60 countries. These programmes are aimed at local law enforcement and prosecutors, equipping them with the skills to identify and investigate crypto fraud using blockchain technology. The training is provided at no cost, especially for regions with less stringent financial regulations or nations involved in citizenship-for-sale schemes.
“Sometimes, after just a week of training, participants express surprise at the extent of these crimes occurring in their countries,” Smith remarked.
One notable investigation revealed a sextortion case involving a teenager from Idaho. This investigation led analysts to a cryptocurrency wallet that had processed US$4.1 million (about AU$6.3 million), resulting in an arrest of a suspect in the UK, who remains in custody.
The prevalence of crypto fraud has now become the leading source of internet crime losses in the US, with the FBI reporting US$9.3 billion (around AU$14.29 billion) lost to cryptocurrency-related scams in 2024 alone. Through collaborations with entities like Coinbase and Tether, which have played crucial roles in freezing and tracing cryptocurrency wallets, the Secret Service has positioned itself as one of the foremost custodians of cryptocurrency assets within the law enforcement community globally.
These efforts underline the ongoing battle against financial crime in the digital realm, highlighting the importance of international cooperation and advanced technological tools in safeguarding against cryptocurrency fraud.
