Coinbase Exchange Plays a Key Role, Supporting US Secret Service in Seizing a Record $225 Million in Crypto Assets from "Pig Butchering" Scams.
According to the file submitted by the US Department of Justice (DOJ) on June 18, the seized assets were identified as profits from large-scale and sophisticated investment fraud networks. This case not only marks a major victory against financial crime but also demonstrates the development of close coordination between the crypto industry and law enforcement agencies.
In the official announcement, Coinbase confirmed participation in an "urgent investigation campaign" in 2024, collaborating with multiple exchanges under the guidance of USSS. The main mission included identifying victim identities, thoroughly analyzing blockchain fund flows, and preparing necessary legal documents for asset seizure.
In just four days at the end of February, Coinbase's team tracked millions of dollars in suspicious transactions, identifying over 130 customers on the platform as victims, with total losses around $2.3 million. These analytical data, combined with court-provided records, played a crucial role in tracing stolen funds.
A large portion of the seized money was transferred to 140 accounts on OKX exchange, many of which belonged to individuals forced to work in fraud camps in Southeast Asia.
Tether also played a key role by freezing 39 wallet addresses containing a total of $225 million, primarily USDT, in 2023. These tokens were subsequently burned, permanently removed from circulation, before an equivalent amount of USDT was reissued and transferred to a wallet managed by the US Secret Service.
Coinbase emphasized that the entire process was publicly recorded on the blockchain, clearly demonstrating the enhanced transparency and effectiveness of crypto technology in supporting law enforcement.
This event is part of a global trend where law enforcement agencies are becoming increasingly sophisticated and effective in tracing and seizing digital assets. From the Bitcoin seizure related to a 2013 theft by the Australian Federal Police to crypto seizures worth tens of millions of euros in Germany, it's clear that the fight against crime in the digital space is entering a new phase, with close public-private sector collaboration being a key factor.
