The US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the worlds largest crypto cold wallets, Bloomberg reported Saturday, citing people familiar with the matter.The agencys Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, Jamie Lam, an investigative analyst with the US Secret Service, reportedly told law enforcement officials in Bermuda last month.The agencys crypto trove, much of which sits in a single cold-storage wallet, results from a string of investigations into scams.
Scammers lure targets into seemingly legitimate crypto investment platforms in one typical scheme.
Victims often see initial profits before the sites vanish with their deposits.Thats how they do it, Lam said.
Theyll send you a photo of a really good-looking guy or girl.
But its probably some old guy in Russia.Source: US Secret ServiceRelated: Brazils central bank service provider hacked, $140M stolenBlockchain trails unmask crypto scamsLams team uses domain records, blockchain transactions, and VPN slip-ups to identify fraudsters.
In one case, a cryptocurrency payment led investigators to another wallet.
In another one, a brief VPN failure exposed an IP address, helping agents piece together the scams digital trail.At the helm of the Secret Services crypto strategy is Kali Smith, who directs a team that has trained officials in over 60 countries to unmask online financial crimes.The agency has focused on jurisdictions with weak oversight or programs selling residency to foreign nationals.
Sometimes after just a week-long training, they can be like, Wow, we didnt even realize that this is occurring in our country, Smith said.The Secret Services work has uncovered scams ranging from romance-investment schemes to sextortion cases.
One investigation involved an Idaho teenager who sent a nude photo to an online stranger.
The scammer extorted $300 twice before the teen went to the police.Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport.
British police arrested the suspected extortionist when he arrived in Guildford, England, where he remains in custody pending extradition.Related: Small possibility $8.6B Bitcoin transfer was a hackCrypto scams top lossesCrypto-related scams have become the top driver of US internet crime losses.
Americans reported $9.3 billion stolen in crypto fraud in 2024, more than half of the $16.6 billion in total internet crime losses that year, FBI data show.Meanwhile, the first half of 2025 has seen more than $2.47 billion in lossesdue to hacks, scams and exploits, representing a nearly 3% increase compared to the $2.4 billion stolen in 2024.Recovering stolen crypto often depends on cooperation from industry players.
Coinbase and Tether have acknowledged assisting in high-profile cases by analyzing transactions and freezing wallets.
One of the largest single recoveries involved $225 million in USDt (USDT) linked to romance scams.Magazine: Dogecoin set for rebound? Ripple eyes US banking license: Hodlers Digest, June 29 July 5