Coinbase & Tether Team Up in Landmark Sting—Secret Service Seizes $225M from Crypto Scammers

Crypto's biggest players just turned the tables on fraudsters. In a coordinated takedown, Coinbase and Tether backed an operation that saw the Secret Service freeze a staggering $225 million in stolen funds.

How the sting went down:

The unlikely alliance between regulated exchanges and law enforcement marks a seismic shift in crypto's wild west era. No more 'move fast and break things'—this was 'track fast and freeze everything.'

Why it matters:

While $225M is pocket change compared to Wall Street's daily fines, it's a wake-up call for scammers: the industry's building antibodies. Just don't expect those 'not your keys, not your crypto' maximalists to celebrate centralized interventions.

What’s next?

The USDT remains in a Secret Service-controlled address until a judge signs off on forfeiture. Tether has pledged to burn the frozen tokens and re-mint an equivalent amount under government control, mirroring its 2022 protocol. Victims can then seek restitution through the Justice Department’s remission process, which historically takes 12 to 24 months.

The FBI’s latest Internet Crime Report tallied $5.8 billion in ‘pig butchering’ losses for 2024. However, figures support losses up to $9.8 billion across all crypto scams. Agents say the Coinbase-assisted bust proves that on-chain transparency can dismantle even cross-border rings, provided exchanges are willing to share their data.

Authorities have asked additional victims to file complaints via the IC3 portal, citing reference code BT06182025. They also hinted at upcoming arrests, pending identification of suspects who tried to off-ramp funds through Asian exchanges.

Meanwhile, Coinbase is using the moment to press its regulatory case in Washington, arguing that “clear federal rules” WOULD encourage more compliant exchanges and stings like this one.