Coinbase’s Involvement in Major Cryptocurrency Seizure
On Tuesday, Coinbase revealed its significant involvement in the recent seizure of nearly $225 million in what has been described as stolen cryptocurrency. This effort was carried out in collaboration with the U.S. Secret Service.
Details of the Operation
This operation, stemming from events that took place throughout 2023, was the culmination of a joint effort that included the U.S. Secret Service, the FBI, and the U.S. Attorney’s Office.
Just last week, these agencies submitted a legal application to confiscate the substantial amount of digital assets from individuals alleged to be involved in fraudulent activities.
Connection to Illicit Activities
Notably, in December 2023, the stablecoin issuer Tether froze around $225 million in USDT suspected to be associated with illicit activities linked to a human trafficking network. This network engaged in a deceptive “swoop and squat” romance scam, with the funds believed to be stored in a self-managed cryptocurrency wallet.
Impact and Acknowledgments
As a major player in the cryptocurrency market, Coinbase’s role was critical in tracing the illicit flow of these digital assets through blockchain technology, enabling authorities to identify victims who are now eligible for restitution.
Special Agent Shawn Bradstreet of the Secret Service highlighted that this marks the most significant cryptocurrency seizure in the agency’s history.
The Department of Justice has also conveyed its appreciation for Tether’s willingness to cooperate with the investigation, underscoring the importance of collaborative efforts in combating digital crime.
