Coinbase Helped Secret Service Crypto Seizure Operation
Summary
Coinbase assisted the US Secret Service in seizing $225 million linked to crypto investment scams, marking the largest cryptocurrency seizure in the agency's history. The Department of Justice filed to seize these funds on June 18, 2024. Coinbase participated in an "investigative sprint" to identify scam victims and analyze transactions, tracing millions in crypto to illicit wallets. This effort identified over 130 customers who lost $2.3 million due to scams. Tether froze 39 wallet addresses containing the seized funds and burned the tokens, later reissuing an equivalent amount to a Secret Service-controlled wallet. This operation demonstrated how blockchain technology can enhance transparency in law enforcement.
