US Secret Service Crypto Seizure: $400M Over Decade
The US Secret Service’s Global Investigative Operations Center has seized nearly $400 million in cryptocurrency over the past decade, including a record $225 million in USDT linked to romance scams and fake investment schemes. Investigators used open-source intelligence, blockchain forensics, domain registry research and VPN slip-ups to trace illicit funds. Key cases include an Idaho sextortion plot involving a minor and 6,000 transactions. Despite these enforcement gains, crypto crime remains on the rise: Americans lost $9.3 billion to scams in 2024 and $2.47 billion to hacks, scams and exploits in H1 2025. Security firm CertiK reported $1.7 billion lost in 34 wallet hacks, $410 million in 132 phishing attacks, plus major breaches like the $1.5 billion Bybit hack and $225 million Cetus Protocol exploit. Ethereum was the top target with $1.6 billion stolen across 175 incidents. As regulators tighten oversight, demand for cold storage and non-custodial wallets with biometric 2FA and advanced cryptography is growing to safeguard assets from fraud and large-scale hacks.
Neutral
This enforcement action underscores enhanced law-enforcement capabilities in tracking and seizing illicit crypto assets, which may bolster long-term market security and confidence. However, it does not directly impact cryptocurrency supply or demand. Traders should view this as a neutral factor: it highlights the importance of secure custody but is unlikely to trigger immediate price movement.