$400 Million in Seized Cryptocurrency Now Sits in Government-Controlled Cold Storage
The U.S. Secret Service has accumulated nearly $400 million in cryptocurrency through years of cybercrime investigations, forming one of the largest cold wallets globally controlled by a law enforcement agency.
This massive cache, quietly built over the past decade, highlights how the agency has adapted its financial crime division to the blockchain era. According to officials familiar with the matter, much of the seized digital assets are stored in a single cold-storage wallet, ensuring maximum security against theft or cyberattack.
Blockchain Forensics and VPN Mistakes Help Unmask Criminals
The agency’s Global Investigative Operations Center (GIOC), led by digital crime expert Kali Smith, relies on open-source intelligence tools, blockchain tracking, and network analysis to investigate fraud. One of their key advantages lies in tracing crypto transactions that many scammers assume are untraceable.
In several investigations, VPN failures exposed real IP addresses, leading authorities directly to suspects. In other cases, wallet-to-wallet transfers left clear transaction trails, allowing analysts to reconstruct fraudulent operations involving stolen funds, digital extortion, and scam platforms.
Romance Scams and Sextortion Among Common Fraud Types
One tactic the Secret Service repeatedly uncovered involves romance-investment scams. Criminals lure victims into crypto “investment” sites, which initially show profits before suddenly disappearing with the victim’s funds.
In another alarming case, an Idaho teenager was extorted through a sextortion scheme. The digital trail led agents from the victim to a coerced “money mule,” and then to a wallet tied to over $4.1 million in illicit transactions. The suspected perpetrator was later arrested in the UK and awaits extradition.
Crypto Scams Now Lead Internet Crime Losses in the U.S.
According to FBI statistics, crypto fraud led all internet-related financial crimes in 2024, accounting for over $9.3 billion in reported losses—more than half of the year’s total internet crime damage. In the first half of 2025 alone, hack-related losses and crypto scams have already topped $2.47 billion, a 3% increase from the same period last year.
Conclusion: Law Enforcement Goes Digital
As blockchain adoption grows, crypto crime investigations are becoming central to financial security enforcement. With hundreds of millions in seized digital assets under its control, the Secret Service is now not only tracking criminals but also holding one of the largest crypto wallets on Earth.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss