25.06.2025 03:45

Coinbase, a prominent American cryptocurrency exchange, played a crucial role in a major crackdown on cryptocurrency scams, collaborating extensively with the United States Secret Service (USSS). This unprecedented operation resulted in the recovery of approximately $225 million in stolen Tether (USDT).

The recovered funds were seized from illicit activities stemming from so-called "pig butchering" scams. These sophisticated schemes typically involve con artists cultivating false romantic or business relationships to manipulate victims into investing in fraudulent cryptocurrency projects. Once sufficient funds are obtained, the perpetrators abruptly sever contact, leaving their victims financially devastated.

This massive recovery effort involved the freezing of 39 cryptocurrency wallets linked to these fraudulent activities by Tether in late 2023. Coinbase's contribution was vital, providing on-chain tracking of stolen cryptocurrencies and helping to identify 130 of their own customers who fell prey to these scams, with losses exceeding $2 million collectively.

The USSS's seizure of $225 million in USDT was followed by Tether's on-chain burning of the tokens. This action paved the way for the reissuance of an equivalent amount to compensate victims. Currently, the Federal Bureau of Investigation (FBI) is overseeing the restitution process, requiring victims to provide verifiable transaction histories from Coinbase or other exchanges as proof of their losses.

The FBI, USSS, and other law enforcement agencies have prioritized combating "pig butchering" scams, recognizing their significant impact and the sophistication of the criminal networks behind them. This collaborative effort underscores the increasing importance of partnerships between cryptocurrency exchanges and law enforcement in the fight against digital fraud.