U.S.-based crypto exchange Coinbase has announced its major role in uncovering and tracing one of the largest crypto frauds in U.S. history. In collaboration with the U.S. Secret Service and FBI, Coinbase helped track millions in stolen digital assets and identify hundreds of scam victims tied to a fraud scheme known as “pig butchering.”


🔹 A Historic Seizure Worth Hundreds of Millions

Last week, Secret Service Special Agent Shawn Bradstreet confirmed the seizure of $225.3 million in USDT, calling it the largest cryptocurrency confiscation in the agency's history.

The funds were linked to an international criminal network engaged in human trafficking and romance-investment scams, where victims were lured via fake online relationships and persuaded to invest in fraudulent crypto projects with the promise of high returns.


🔹 Coinbase Played a Key Role in the Investigation

Coinbase revealed that its forensic team worked for several days tracing hundreds of thousands of blockchain transactions from suspicious wallets back to payments made through its platform. This allowed authorities to identify specific victims eligible for restitution.

“Our forensic analysis helped flag the victims and track the suspect wallets. We’re proud to support the fight against crypto-related fraud,” said Coinbase.

🔹 Crypto Scams Skyrocket in 2024

A report from Chainalysis shows that pig butchering scams have soared this year:

📈 Revenue from such scams is up 40%

📈 Deposits into scam wallets surged 210% compared to 2023

📉 However, the average deposit per victim dropped 55%, indicating a shift in strategy: scammers are now targeting more people with smaller amounts.

Additionally, other fraud methods have also surged:

🔹 Address poisoning attacks up 15,000%

🔹 Fake airdrop campaigns

🔹 Scams impersonating the U.S. SEC

One of the year’s most notable events occurred on May 3, when an attacker nearly stole $68 million in WBTC on Ethereum – only to return the funds to the victim. The incident sparked speculation about the motives behind the act.


🔹 Tether Steps In

Stablecoin issuer Tether, acting on authorities’ requests, froze the wallets tied to the scam and stated that it has now frozen over $2.7 billion in USDT linked to illegal activity since its inception. This highlights how stablecoins have become a preferred tool for laundering stolen crypto assets.



#Tether , #Cryptoscam , #CryptoFraud , #CryptoSecurity , #CryptoCrime

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