The cryptocurrency exchange Coinbase played an active role in uncovering a large-scale pig butchering fraud scheme, leading to the seizure of digital assets worth $225 million in USDT.
This is reported by Business • Media
The Operation Set a Record for the U.S. Secret Service
The case, which dates back to 2023, involved a criminal group that organized a so-called “romance scam” of the pig butchering type. According to law enforcement, this scheme had an international dimension and was linked to human trafficking. Last week, the U.S. Secret Service, FBI, and the prosecutor’s office conducted an asset seizure operation: $225 million in USDT was frozen, stored in 39 non-custodial wallets associated with the fraudsters.
According to a report by Chainalysis, in 2024, the pig butchering scheme became even more widespread among scammers, highlighting the relevance of combating this type of crime.
Coinbase’s Role and Next Steps
Coinbase emphasized that its team meticulously tracked the movement of the stolen cryptocurrency, identified user addresses, and assisted in determining victims eligible for compensation. The exchange’s analysts conducted a multi-day operation, analyzing million-dollar transactions and account activity to identify affected users.
“The Coinbase team conducted a multi-day operation to trace millions of dollars in cryptocurrency flowing from illegal wallets and analyzed account activity to identify victims,” the company stated.
Tether highlighted that this case reaffirms the company’s commitment to being a leader in compliance, transparency, and combating crime in digital assets. According to the company, over $2.7 billion in USDT linked to illegal activities has been blocked in total.
U.S. Secret Service Special Agent Sean Bradstreet called this seizure “the largest cryptocurrency confiscation in the agency’s history.”
Coinbase also noted that individuals who believe they are victims of this scheme can file a complaint through the FBI’s Internet Crime Complaint Center.
Recall that in May, Coinbase reported a data breach affecting users with potential losses of up to $400 million.