The cryptocurrency platform Coinbase played a crucial role in uncovering a large pig butchering scam that led to a significant seizure of digital assets in the U.S. In this case, assets totaling $225 million USDT were frozen in 2023, held in 39 non-custodial cryptocurrency wallets. This operation marked the largest cryptocurrency seizure for the U.S. Secret Service and involved an international network engaged in romantic fraud and human trafficking.
This is reported by Finway
Major Operation Against Cryptocurrency Fraudsters
In June 2025, it was revealed that the U.S. Secret Service, FBI, and prosecutors conducted a joint operation, initiating a warrant to confiscate digital assets linked to “romantic fraud” of the pig butchering type. Such schemes are increasingly being utilized by fraudsters, as evidenced by a report from Chainalysis — in 2024, pig butchering became an even more popular method of swindling money from trusting users.
In December 2023, Tether froze $225 million USDT, which, according to law enforcement, belonged to the organizers of the fraudulent scheme. Coinbase analysts tracked the movement of the stolen cryptocurrency for several days, identified related wallets, and helped locate victims who might be eligible for compensation.
“The Coinbase team conducted a multi-day operation to trace millions of dollars in cryptocurrency flowing from illegal wallets and analyzed account activity to identify victims,” the company stated.
Combating Cybercrime and Industry Collaboration
Tether emphasized that this case illustrates its commitment to leadership in compliance, transparency, and combating the criminal use of digital assets. Overall, the company estimates that over $2.7 billion USDT has been blocked due to illegal activities.
U.S. Secret Service Special Agent Sean Bradstreet stated that this is the largest cryptocurrency seizure in the agency’s history. Meanwhile, Coinbase stresses that users who believe they are victims of this fraudulent scheme have the opportunity to file a complaint through the FBI’s Internet Crime Complaint Center.
It is worth noting that in early May, Coinbase reported a potential data leak affecting users, with possible losses up to $400 million.