This month has seen a groundbreaking collaboration between cryptocurrency companies and law enforcement in the United States. On June 18, the Department of Justice announced a move to seize over $225 million in digital assets tied to elaborate fraud schemes known as pig-butchering scams.
This significant operation was made possible through advanced blockchain analytics and a rapid response from various cryptocurrency exchanges and a major stablecoin provider, effectively freezing and securing funds linked to criminal activities.
Partnership with Exchanges
In a recent statement from Coinbase, it was revealed that their investigative team played a key role alongside the US Secret Service from February 26 to February 29, 2024. During this period, they monitored substantial suspicious financial movements, alerting authorities about transactions connected to fraudulent wallets.
Reports indicate that over 130 users of Coinbase were victims of these scams, with their losses amounting to around $2.3 million. Law enforcement utilized subpoenaed account history to establish connections between the illicit transactions and victim accounts.
Additionally, Coinbase identified that a portion of the seized funds was distributed across approximately 140 accounts at OKX, many belonging to individuals apprehended in scam operations across Southeast Asia.
A major milestone in law enforcement efforts! The U.S. Secret Service has successfully seized $225M in stolen cryptocurrencies associated with pig-butchering scams, thanks to Coinbase. Victims may be eligible for restitution. Check your eligibility!
— Coinbase Support (@CoinbaseSupport) June 24, 2025
Actions by Major Crypto Players
Tether, a significant player in the stablecoin market, announced that the firm froze 39 wallet addresses following the DOJ’s evidence against them. These wallets contained approximately $225 million worth of USDT. Subsequently, Tether executed a burn operation, sending the tokens to an inaccessible address, rendering them unspendable forever.
In a strategic countermeasure, Tether also minted an equivalent amount of new USDT and transferred it to a wallet under the control of the Secret Service. This operation illustrated a critical use case for stablecoins in combating illicit activities.
A Historic Seizure
The DOJ reported that this operation stands as the largest crypto seizure attributed to the U.S. Secret Service. Notably, it comes amid an alarming rise in pig-butchering scams, where fraudsters develop relationships with victims to coax them into investing in fraudulent schemes.
Law enforcement hailed this case as a breakthrough in fighting crypto-related crime, emphasizing the vital role of on-chain data in tracing and recovering stolen assets.
International Collaborations and Future Prospects
Meanwhile, similar actions are being noted globally. In May, the Australian Federal Police seized nearly 25 Bitcoin—valued at about $2.6 million—from individuals connected to a decade-old hack involving a French exchange.
In February, German authorities confiscated 34 million euros (approximately $38 million) in cryptocurrency linked to the massive Bybit attack. Analysts suggest that these collaborative efforts send a compelling message: anonymity in the crypto space is a myth.
Investors should remain vigilant against unsolicited investment proposals. As security protocols improve, exchanges will enhance their forensic tools to detect illicit fund movements more swiftly.
Featured image courtesy of AP/Julia Nikhinson, File, chart sourced from TradingView.
