Over the past decade, the US Secret Service has developed into one of the largest holders of cryptocurrency through asset seizures, amassing nearly $400 million in the process.
From Romance Scams to Investment Traps
Most of the cryptocurrency seized by the Secret Service is kept securely in offline storage. This means the digital keys needed to access funds are stored on devices not connected to the internet, making them considerably harder for hackers to access. Jamie Lam, an analyst with the Secret Service, explains how scammers leverage psychological manipulation and polished websites to gain trust before disappearing with crypto deposits.
Global Reach, Local Impact
To scale their efforts, the agency has trained officers in over 60 countries, focusing on regions with weak oversight. Kali Smith, who leads global training efforts, shares how even a week of on-ground workshops has helped local authorities uncover hidden fraud rings. One particularly alarming case involved a teenager from Idaho blackmailed with compromising photos, with funds traced through 6,000 transactions to a suspect holding a Nigerian passport.
Crypto Firms Join the Fight
The Secret Service isn't working alone. Partnerships with major platforms like Coinbase and Tether have facilitated the swift tracing and freezing of illicit assets. In one notable case, the agency recovered $225 million in USDT linked to a romance-investment scam network.
Despite successes in combating crypto crime, the prevalence of scams continues to rise, with investors losing $2.2 billion in the first half of 2025. Nonetheless, the Secret Service remains committed to holding onto stolen cryptocurrency, showcasing its adaptability in the landscape of digital crime.
