- Coinbase aids US in $225M scam takedown.
- USDT wallets impacted, seized, and reissued.
- Collaborative effort with law enforcement agencies.
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Coinbase and the U.S. Secret Service joined forces to tackle a $225 million crypto scam, targeting USDT wallets held by fraudulent actors.
The crackdown highlights increased collaboration between crypto platforms and federal authorities, pointing to more stringent oversight in combating financial crimes.
Coinbase partnered with the U.S. Secret Service in a major operation to combat a crypto scam amounting to $225 million. USDT wallets were primarily affected, with Tether Ltd. reissuing assets after a full seizure.
The operation involved tracing fund transfers and coordinating with law enforcement to seize assets from an Asia-based “pig-butchering” scam ring. Over four months of investigative efforts spanned multiple agencies including the FBI.
The immediate market impact included USDT being frozen and reissued, with funding focused on asset recovery. Coinbase facilitated asset tracing, evidencing its compliance role in the asset seizure tactic.
“Coinbase’s threat-intelligence team worked shoulder-to-shoulder with agents for four months, tracing outbound transfers from 130 customer accounts whose owners lost a combined $2.3 million to an Asia-based ‘pig-butchering’ scam ring. Those breadcrumbs ultimately pointed investigators to 39 USDT wallets that Tether froze on 20 November 2023.” — Coinbase Blog
The operation has sectored financial implications, demonstrating enforcement agencies’ reliance on crypto platforms for fraud prevention. Political focus intensifies on centralizing crypto compliance frameworks.
Insights suggest a trend towards tighter regulations across crypto markets following these seizures. This case underscores the value of collaboration with federal agencies in addressing new-age financial crimes.
