Key Takeaways:
- The U.S. Secret Service has quietly built one of the world’s largest crypto cold wallets, seizing nearly $400 million in digital assets from fraud investigations.
- Agents trace digital breadcrumbs like VPN errors and blockchain transactions, often uncovering scams involving fake investment platforms and romance fraud.
- In 2024, crypto-related scams accounted for $9.3 billion in losses in the U.S., over half of all internet crime losses, with recovery efforts aided by firms like Coinbase and Tether.
Over the past decade, the U.S. Secret Service has quietly built one of the world’s largest crypto cold wallets, seizing nearly $400 million in digital assets tied to online fraud.
These assets, mostly stored in a single cold wallet, were obtained through investigations led by the agency’s Global Investigative Operations Center (GIOC) using blockchain analysis, open-source tools, and tracking VPN slip-ups.
The US Secret Service's Global Investigative Operations Center is using digital tools and patience to trace and seize fraudulent cryptocurrency assets worldwide https://t.co/znfvV6DS6r
— Bloomberg (@business) July 5, 2025
A key figure in these operations is Kali Smith, who trains officials in over 60 countries to detect crypto-related crimes, often in areas with weak oversight or lax residency programs.
Common scams include fake investment platforms, romance fraud, and sextortion, with agents following digital breadcrumbs to identify perpetrators.
Hype and confusion are fueling a rise in crypto-related crime.
— U.S. Secret Service (@SecretService) May 21, 2025
🎥 Check out our latest PSA to learn the 🚩 red flags 🚩 and what to do if you're a victim.
🔗 https://t.co/wFPHgPI25H #crypto #digitalassets #secretserviceinvestigates pic.twitter.com/z3hmmrKPUu
Crypto-related scams now represent the top category of internet crime losses in the U.S.
In 2024, Americans lost $9.3 billion to crypto fraud.
In just the first half of 2025, over $2.47 billion has already been lost.
Recoveries often rely on help from industry players like Coinbase and Tether, which assist in tracing and freezing illicit funds.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
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