Coinbase, one of the largest cryptocurrency exchanges, announced its role in the seizure of $225 million in cryptocurrency linked to global fraud.
Seizure of Funds and Fraud Connection
The seized funds, mostly held in stablecoin USDT, were frozen in December 2023 by Tether after authorities flagged links to a human trafficking syndicate behind 'pig butchering' scams.
Role of Coinbase and Law Enforcement
Coinbase stated it worked closely with investigators to trace the stolen crypto on-chain and identify victims eligible for restitution. Special Agent Shawn Bradstreet noted that this marked the largest crypto seizure in Secret Service history.
Losses from Cryptocurrency Fraud
According to the Department of Justice, over 400 people are believed to have lost millions through fake crypto investment platforms. In 2024, fraud related to cryptocurrencies resulted in losses exceeding $5.8 billion.
These events highlight the importance of collaboration between crypto platforms and law enforcement in combating fraud and the need to protect investors from such schemes.
