Cryptocurrency exchange Coinbase has revealed it played a pivotal role in assisting US federal agents in seizing $225 million in allegedly stolen crypto assets, marking one of the largest operations of its kind to date.
Coinbase: Helped US authorities in Seizing $225M Stolen Crypto
The seizure stems from a case that involves a complex online fraud and human trafficking scheme that dates back to 2023. Federal authorities, including the US Secret Service, FBI, and the US Attorney’s Office, formally ordered the seizure last week, and targeted funds connected to a “pig butchering” scam. This scam is also a type of romance-based financial fraud.
In December 2023, Tether, the issuer of the USDT stablecoin, had already frozen the funds in question, approx $225 million worth of USDT, stored in self-custody wallets allegedly linked to the criminal group. The move was welcomed by law enforcement as an important step in the investigation.
Coinbase, which is known to be one of the leading crypto exchanges in the US, said its compliance and security teams worked closely with federal agents to track illegal funds on the blockchain. According to a company statement released Tuesday, Coinbase employees spent several days tracing crypto transactions, identifying how the stolen assets moved through wallets, and connecting them to accounts originating from its platform. The company also helped track potential victims eligible for compensation.
Shawn Bradstreet, Special Agent in Charge at the US Secret Service, called the seizure the “largest cryptocurrency seizure in the U.S. Secret Service history.”
Tether, which is often on the radar for its role in the crypto ecosystem, praised the operation and highlighted its broader efforts to combat criminal activity in the crypto space. The company claimed it has now frozen over $2.7 billion in USDT tied to illicit transactions globally.
As the investigation progresses, victims who believe they were affected are being encouraged to file a report with the FBI’s Internet Crime Complaint Center.
On a different note, Coinbase recently revealed that it was aware of a customer data breach as early as January, according to six people familiar with the matter. Moreover, reports suggest that the breach was linked to a customer data leak in India.
In its May SEC filing, Coinbase stated that it noticed suspicious data access “in previous months,” but only realized the full scale of the breach after receiving an extortion demand on May 11.
Also Read: Coinbase CEO: World Needs Crypto, Now More than Ever
