U.S. Secret Service Tackles Crypto Crime with Advanced Blockchain Tools
The U.S. Secret Service is transforming into a top-tier crypto crime-fighting unit. They now use blockchain forensics instead of conventional methods. The agency’s Global Investigative Operations Center has seized almost $400 million in digital assets. Thes assets were stored in a single cold wallet.The operations targeted scams, fraud, and extortion.
A recent case highlights their progress. After a teenager faced sextortion demands, agents traced the crypto payments. They followed the trail to a Nigerian suspect linked to thousands of illegal transactions. This shift shows how the agency adapts to digital threats.
Investigative analyst Jamie Lam leads the effort. The team uses software,subpoenas,and spreadsheets to combat digital financial crimes. They analyze blockchain data, domain registrations, and wallet connections. This approach helped solve a case involving a young victim. The Secret Service traced the crypto to a Nigerian suspect. The suspect had processed over $4.1 million across nearly 6,000 transactions. The suspect was later arrested in England.
One major issue is romance scams. These scams caused $9.3 billion in crypto losses in 2024. Older victims lost nearly $2.8 billion, mostly via fake investment platforms. The Secret Service collaborates with crypto firms like Coinbase and Tether. They froze a wallet with $225 million in USDT linked to romance scams. The agency’s Kali Smith trains global law enforcement. She has educated over 60 countries on digital crime detection.
Smith notes that many countries are unaware of the problem’s scale. The Secret Service works with platforms to freeze wallets and recover funds. Their work involves domain checks and wallet tracking. The FBI reports $16.6 billion in internet crime losses. Crypto scams accounted for over half of these losses.
Patrick Freaney, head of the New York office, says, “We’ve always followed the money. Now,we follow digital trails.” The team’s skills are in high demand. They’ve recovered millions in stolen funds. Their work involves reconstructing crimes using screenshots and receipts. Their training sessions reveal hidden digital crimes. “We didn’t know this was happening,” said a Bermuda attendee. The agency’s methods include domain checks and blockchain analysis. They’ve recovered ample sums. The Secret Service’s skills are vital in a digital age. Their training boosts global crypto crime-fighting efforts.
