The US Secret Service has quietly seized almost $400 million in digital assets over the past decade, storing much of it in a single cold‑storage wallet, agency analysts told Bloomberg on Saturday.
The Global Investigative Operations Centre used open‑source tools, blockchain tracing, and patient sleuthing to follow scam proceeds from fake crypto investment sites into this massive trove.
Tracking Crypto Frauds
Investigators say many of these seizures began with romance‑investment or sextortion schemes. Scammers would lure victims to sham platforms, promise quick profits and then vanish with the deposits.
By tracing crypto payments and linking domains to wallet addresses, agents could move in. “They send you a photo of a really good‑looking person,” said Jamie Lam, an investigative analyst with the Secret Service, “but it is likely someone in Russia.”
Tools of the GIOC
Instead of badges or firearms, the agency’s Global Investigative Operations Centre, or GIOC, uses spreadsheets, subpoenas, and software. An IP address may be exposed by a temporary break in a suspect’s VPN use.
Domain registration records often identify who paid for fake investment sites. By stitching these clues together, agents traced funds from the first scam to subsequent wallets until they seized them. Patience is key, Lam noted. “Sometimes you just need to wait.”
Leading Scams and Landmark Cases
One high‑profile probe involved a teenager in Idaho who sent nude photos to an online stranger. The extortionist forced the teen to pay $300 twice before police stepped in.
Analysts followed the money through coerced money mules and uncovered a wallet tied to $4.1 million in transactions. British police arrested the suspect on a Nigerian passport when he flew into Guildford, England, and he now awaits extradition.
Training and Global Outreach
At the heart of the Secret Service’s crypto effort is Kali Smith, the lawyer who directs its cryptocurrency strategy. She and her team have hosted workshops in over 60 countries to train local law enforcers and prosecutors in tracing digital crimes.
The agency focuses on jurisdictions with weak oversight or residency‑for‑sale programs. Often, after just a week of training, officials tell Smith they had no idea such schemes were happening in their backyards.
Crypto Crime on the Rise
Crypto fraud has become the top driver of US internet crime losses. In 2024, Americans reported $9.3 billion stolen in crypto scams, over 55% of the $16.6 billion lost to all internet crimes, according to FBI data.
So far in the first half of 2025, they have lost more than $2.47 billion to hacks, scams and exploits, a nearly 3% rise compared to the full year 2024.
Shifting Federal Strategy
In a parallel move, the Department of Justice has disbanded its National Cryptocurrency Enforcement Team.
The NCET led high‑profile money‑laundering cases and illicit finance probes. Its closure signals a reshuffle in how the government tackles digital‑asset crime, even as the Secret Service’s GIOC expands its reach.
Over the last decade, the Secret Service has emerged as one of the world’s largest custodians of seized crypto, using a blend of digital forensics and old‑fashioned persistence.
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