U.S. Bolsters International Fight Against Cryptocurrency Scams, Seizing Billions
Coordinated global efforts targeting digital asset fraud are ramping up, with U.S. authorities focusing not only on tracing and recovering stolen crypto but also on preventing future schemes.
Focus on Financial Recovery
The heart of this international pushback against cryptocurrency fraud is the Secret Service’s Global Investigative Operations Center (GIOC), a specialized unit dedicated to tracing digital asset scams and facilitating fund recovery efforts worldwide.
Recent data highlighted by *Bloomberg* paints a significant picture of the GIOC’s impact: nearly $400 million in digital assets have been seized through its operations over the past ten years.
Furthermore, U.S. seizures of Bitcoin amount to over 195,000 BTC, with trackers like Jameson Lopp indicating these assets are now worth more than $21 billion.
Prevention Through Training
However, the emphasis is increasingly shifting towards prevention. The Secret Service is actively engaged in capacity-building, conducting workshops in over 60 countries.
These workshops equip law enforcement and prosecutors with vital tools needed to investigate digital transactions and unmask complex crypto-based scams hidden behind deceptive websites and promises.
Crypto Crime Dominates US Cybercrime Losses
To contextualize the urgency, FBI statistics reveal that cryptocurrency-related fraud constitutes the bulk of the financial losses stemming from internet crime in the United States.
Victims worldwide reported losses totalling $9.3 billion from crypto scams the previous year alone.
Operation Breakout: A Major Asset Recovery Effort
The complexity involved in such investigations was dramatically illustrated in a significant $225 million recovery effort. Authorities managed to freeze substantial funds involving USDT, with crucial assistance from stablecoin issuer Tether and major exchange OKX.
Blockchain investigators, notably those at TRM Labs, meticulously traced the funds. Their analysis revealed an intricate money laundering path involving hundreds of wallets before the illicit proceeds consolidated into just seven final holdings.
