U.S. Secret Service Quietly Builds One of the World’s Largest Cold Wallets
The Secret Service Manages to Trace and Store Nearly $400M in Seized Crypto From a Range of Crypto Investment Scams, Extortions and Romance Scams Over a Decade
Over the past decade, the U.S. Secret Service has quietly become one of the largest holders of cold wallets in the world by seizing funds from a wave of crypto-related scams.
Bloomberg reports that the agency has secured nearly $400 million in seized digital assets, much of which it stores in a single cold wallet. The seizures come from a wide range of crypto scams, including crypto investment scams, sex extortion, and $225 million in USDt linked to romance scams.
How the Secret Service Recovered The Scam Funds
The agency’s massive crypto stash is the result of persistent and targeted investigations into online fraud, investment scams, and extortion plots. Coordinating the efforts is the Global Investigative Operations Center (GIOC), a specialized unit that traces criminal activity on the blockchain. Their mission is clear: follow the digital money trail and take down individuals exploiting crypto’s anonymity.
The GIOC relied heavily on blockchain transactions and domain registration records to make busts. Each digital footprint helped the analysts piece together a global web of fraudulent activity.
In many cases, scammers lured victims to fake investment platforms with the promise of fast profits. Early returns often convince victims to invest more before the site eventually closes, carting away the invested funds.
The insights gained have enabled the Secret Service to train law enforcement in over 60 countries, especially in regions where scammers thrive due to weak regulatory oversight.
Industry Partnerships Make Recovery Possible Despite Crypto’s Anonymity
Sadly, the decentralized nature of cryptocurrency, which offers financial privacy, is being exploited for fraudulent purposes. The first half of 2025 alone saw $2.47 billion in losses from hacks, phishing attacks, and exploit-based thefts, representing a nearly 3% increase from the previous year.
Furthermore, while tracing illicit funds is critical, recovering them often depends on collaboration with the private sector. Major crypto players, such as Coinbase and Tether, have collaborated with the Secret Service to analyze blockchain activity and freeze suspicious wallets. The successful recoveries and partnerships demonstrate that law enforcement agencies and tech firms must cooperate to combat cybercrime effectively.
