Coinbase
$1.41B
has announced it assisted the US Secret Service in a large-scale investigation that led to the recovery of $225 million connected to online fraud.
The operation focused on “pig butchering” scams, fraud schemes where victims are tricked into sending money through fake investments.
According to a June 18 filing by the Department of Justice, this was the largest cryptocurrency seizure the Secret Service has made to date.
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Coinbase said in a blog post published on June 24 that its team worked closely with the agency and other exchanges throughout 2024 to trace the stolen assets and help identify people who had been scammed.
The company explained that during a four-day period in February 2024, it analyzed blockchain records and account activity. This allowed them to track how the funds moved and spot wallets that had received scam-related crypto.
With the help of subpoenas, Coinbase was able to identify over 130 of its users who had sent cryptocurrency to scam wallets. The total loss from those accounts was around $2.3 million, the company said.
The investigation also discovered about 140 wallets on the exchange OKX
$2.11B
linked to the stolen funds. Many of those accounts were connected to individuals working under pressure in scam compounds in Southeast Asia, according to Coinbase.
Coinbase noted that this entire process was visible on the blockchain. It said this shows how public records in crypto can support investigations and provide clear evidence of asset movement.
Recently, Coinbase announced that it is making progress in resolving unnecessary account freezes. What did the exchange say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
