US Secret Service Seizes $400M Crypto Stash in Crackdown on Scams

The United States Secret Service has quietly seized nearly $400 million in crypto scams crackdown over the past decade, building one of the world’s largest crypto cold wallets, Bloomberg reported Saturday. The agency’s efforts are led by its Global Investigative Operations Center (GIOC), which has traced funds through blockchain analysis and open-source tools.

Jamie Lam, an investigative analyst with the Secret Service, reportedly explained to law enforcement officials in Bermuda last month how the agency identifies and traces fraudsters. 

According to Lam, scammers typically lure victims into fake crypto investment platforms, allowing them to see initial profits before disappearing with their deposits. “They’ll send you a photo of a really good-looking guy or girl. But it’s probably some old guy in Russia,” Lam said, illustrating the deceptive tactics commonly used in these schemes.

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At the forefront of the Secret Service’s crypto strategy is Kali Smith, who leads a team that has trained officials in over 60 countries to unmask online scams and track illicit crypto flows. The agency generally focuses on jurisdictions with weak regulatory oversight or programs offering residency to foreign nationals, which scammers exploit to operate across borders.

Smith noted that local officials are often surprised at the scale of crypto-related crime occurring within their own countries. “Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realize that this is occurring in our country,’” she said.

The efforts by Secret Service have uncovered scams ranging from romance-investment frauds to sextortion cases. In one investigation, analysts traced payments from an Idaho teenager, who was extorted after sending a nude photo, through another coerced teenager acting as a money mule. This trail also led to an account linked to nearly $4.1 million under a Nigerian passport, resulting in the suspect’s arrest in the UK pending extradition.

Crypto Scams Continue to Drive Losses

Crypto-related scams have become the leading driver of internet crime losses in the United States. Americans reported $9.3 billion in crypto fraud losses in 2024, accounting for more than half of the total $16.6 billion in internet crime losses reported that year, according to FBI data.

In the first half of 2025 alone, crypto hacks, scams, and exploits have led to over $2.47 billion in losses, slightly up from the previous year. Recovery efforts often depend on collaboration with industry players, with Coinbase and Tether assisting in freezing wallets and analyzing transactions. 

Notably, a single operation led to the recovery of $225 million in USDT linked to romance scams, showcasing the growing effectiveness of digital asset recovery efforts amid rising fraud.

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