U.S. Secret Service Amasses Nearly $400 Million in Seized Cryptocurrency, Creating One of the World’s Largest Crypto Cold Wallets
July 6, 2025 — Over the past decade, the United States Secret Service has quietly confiscated close to $400 million in digital assets, forming one of the largest known cryptocurrency cold wallets in the world. This significant accumulation comes as a result of prolonged investigations into various crypto-related fraud schemes, Bloomberg reported Saturday, citing insider sources familiar with the matter.
Tracking Crypto Through Advanced Forensics and Patience
The Secret Service’s Global Investigative Operations Center (GIOC) employs sophisticated blockchain analytics, open-source intelligence tools, and meticulous scrutiny of digital footprints to trace illicit crypto flows. Jamie Lam, an investigative analyst with the agency, recently shared details about these investigative methods with law enforcement officials in Bermuda.
“Our investigations are grounded in patience and a deep understanding of blockchain data,” Lam explained. “Sometimes it’s about catching scammers when they slip up—whether through domain registration details, blockchain transaction patterns, or errors made while using VPNs.”
In one notable instance, a short-lived VPN mistake revealed an IP address that helped agents piece together a larger criminal network. On another occasion, a cryptocurrency payment acted as a breadcrumb trail linking one fraudulent wallet to another.
Scams Uncovered and Techniques Deployed
Much of the seized crypto originated from various scams targeting unsuspecting victims. A common tactic involves scammers enticing victims with fraudulent cryptocurrency investment platforms, where initial returns appear promising. Eventually, these platforms vanish, taking victims’ deposits along with them.
Lam painted a vivid picture of the deceptive methods used by scammers: “They’ll send you a photo of a really good-looking guy or girl, but in reality, it’s probably some old guy in Russia behind the scenes.”
Under the leadership of Kali Smith, the head of the Secret Service’s crypto strategy, the agency has also extended training programs to officials in over 60 countries. These initiatives emphasize identifying and addressing online financial crimes, especially in jurisdictions plagued by weak regulatory oversight or residency schemes that attract foreign criminals.
“After just a week-long training, some participants are shocked to realize these scams may be active right in their own backyards,” Smith noted.
From Romance Scams to Sextortion: The Wide-Ranging Impact of Crypto Fraud
The agency’s investigations have uncovered a spectrum of criminal schemes, from romance-investment scams to sextortion cases. One such investigation involved an Idaho teenager who was coerced into sending nude photos to an online stranger and then extorted for money multiple times. Analysts connected the extortion payments through a series of intermediaries, eventually leading to a wallet associated with millions of dollars linked to identities under false Nigerian passports. British authorities arrested the suspect in Guildford, England, where extradition proceedings are underway.
Growing Crypto Crime Losses and Industry Cooperation
Data from the FBI highlights that cryptocurrency scams now constitute the primary source of internet crime losses in the United States. In 2024, Americans reported $9.3 billion stolen via various crypto frauds—over half of the $16.6 billion total lost through internet crime.
The first half of 2025 has seen an alarming increase, with losses due to hacks, scams, and exploits exceeding $2.47 billion, a nearly 3% rise from the previous year.
Recovery of stolen digital assets remains challenging but is increasingly reliant on cooperation from cryptocurrency industry stakeholders. Major players like Coinbase and Tether have publicly acknowledged their roles in assisting law enforcement by analyzing blockchain transactions and freezing suspect wallets. One of the largest coordinated recoveries involved the reclamation of $225 million in USDt (Tether) connected to a sprawling romance scam network.
The U.S. Secret Service’s clandestine build-up of seized cryptocurrency not only represents a formidable tool in the fight against digital financial crime but also offers a window into the evolving methods by which law enforcement combats increasingly complex crypto-enabled scams worldwide. Through a blend of technology, international collaboration, and persistent investigation, the agency continues to disrupt illicit activities and aid in the recovery of stolen assets.
For more detailed insights into crypto security and ongoing investigations, stay tuned to our in-depth coverage.