The US Secret Service has transformed into a key player in the fight against cryptocurrency-related crimes, as reported by Bloomberg on a Saturday. Through its Global Investigative Operations Center, the agency has confiscated approximately $400 million in digital assets over the past decade, with a substantial portion stored in a highly valuable cold wallet. As digital fraud dominates internet crime in the US, crypto scam losses reached $9.3 billion in 2024, according to FBI data. The majority of these losses stem from investment fraud, fake platforms, and extortion schemes, which disproportionately affect older victims who lost nearly $2.8 billion last year.
The Global Investigative Operations Center utilizes open-source tools, subpoenas, and blockchain analysis to track stolen funds. Under the leadership of attorney Kali Smith, the unit provides training to law enforcement agencies worldwide, focusing on jurisdictions with lenient oversight. A recent workshop in Bermuda highlighted the risks faced by crypto-friendly regions. Industry partners have assisted in significant recoveries, including $225 million in USDT tied to romance and investment scams.
'This training is part of our mission,' stated Patrick Freaney, head of the New York field office. 'We've been following the money for 160 years.'