- Coinbase aids US Secret Service in record $225M crypto scam bust.
- Scam tied to fake relationships traced to 140 OKX accounts.
- Over 130 Coinbase users identified as victims in fraud scheme.
In a major win against crypto crime, the U.S. Secret Service, with strong support from Coinbase, has seized $225 million in crypto tied to a scam. This is the biggest crypto seizure in the history of the agency and portrays how digital messages and the police can collaborate to defend victims.
Secret Service Traces $225M to OKX Scam Wallets
The money impounded was related to a version of a scam referred to as pig butchering. They are internet frauds or scams where the scammers lure victims into bogus relationships or even business partnerships and subsequently take away a lot of money in the process. Most of the victims thought they were investing, however, they lost all.
Initially, there was a case that started late in 2023 when USDT issued by Tether, a company, froze 39 suspicious wallet addresses. These wallets contained $225 million in stolen money. In addition, these wallets were connected later to more than 140 accounts on the crypto exchange OKX by the U.S. Secret Service. Most of these accounts were operated ones in which individuals in Southeast Asia who were engaged in the cybercrime industry.
At the beginning of 2024, Coinbase cooperated with the Secret Service and other crypto exchanges in a special investigation. Coinbase was able to assist the police with on-chain transactions between February 26 and 29 to determine the victims of the scam. They examined the transactions of cryptocurrencies worth millions of dollars and linked them to accounts of users. Due to this endeavor, more than 130 accounts of Coinbase victims were ranked as scams, and they lost nearly $2.3 million.
Consequently, on June 18 of the year 2025, the Department of Justice formally moved to freeze the money. Now that the government controls the money, the next step is to return it to the victims.
Seizure Marks Major Victory Against Online Crypto Investment Scams
First, the Secret Service launched a program to help scam victims recover their stolen money. Next, victims should visit the FBI Internet Crime Complaint Center at IC3.gov to file a report. After this, they must include the code BT06182025 in their complaint for proper identification. They are also required to produce evidence of their transactions. This typically translates into downloading the transaction history of their account. As a result, this will share it with the platform they have transacted on, usually Coinbase.
To help with this, Coinbase has already taken several helpful steps. The company released guidelines on the way in which the user can view their crypto history. It also added more support to users who have problems getting account access or sending documents. Coinbase is in close contact with law enforcement to ensure that the claims process is fluent.
Transparency is also another issue that is important in this case. Tether on-chain destroyed the stolen on-chain tokens of USDT worth $225 million, after freezing the funds. It then minted new USDT and forwarded it to a wallet that the U.S. Secret Service operated. Everything undertaken in each of these steps could be seen live on the blockchain. This shows that using blockchain technology, law enforcement and the population will be better served.
Finally, this seizure is one giant leap towards the battle against crypto scams. It depicts the coexistence of the law enforcement mechanism, cryptocurrency exchanges, and blockchain technology. Due to the significant role played by Coinbase, hundreds of victims have been given hope that they will be able to retrieve their lost money.
