Coinbase’s Key Role in $225M Pig Butchering Scam Bust

• Coinbase traced illicit USDT funds frozen by Tether
• Over 130 victims flagged, $2.3M identified for restitution
• Highlights public‑private collaboration and on‑chain transparency

How Coinbase Helped Crack the Case

In a major law enforcement breakthrough, Coinbase played a crucial part in assisting the U.S. Secret Service to seize $225 million in USDT stolen through pig butchering scams. These scams, which manipulate victims into fraudulent romantic or investment schemes, have become a global issue. Coinbase joined the operation after Tether froze 39 suspicious wallet addresses in late 2023.

Between February 26–29, 2024, Coinbase’s team collaborated with agents to analyze blockchain data and track down the stolen crypto. Their efforts led to the identification of the victims and the tracing of illicit fund flows. This meticulous tracking confirmed that scam networks operating from Southeast Asia were behind much of the activity.

Victims Identified and Funds Secured

Thanks to Coinbase’s blockchain expertise, over 130 users were identified as victims, collectively losing around $2.3 million. Coinbase used transaction data to link stolen assets back to known exchange accounts. With this evidence, the Secret Service obtained a court order to seize the funds.

Tether played its part by burning the frozen USDT and reissuing it under secure custody. The tokens were then transferred to a wallet controlled by U.S. authorities. This move ensured that all seized funds were safe, traceable, and ready for potential restitution.

A Landmark in Crypto Crime Fighting

This seizure is the largest in the Secret Service’s history involving cryptocurrencies. It also sets a precedent for how exchanges, stablecoin issuers, and law enforcement can collaborate effectively. Coinbase is currently helping impacted users by providing transaction reports and guiding them on how to claim restitution through official channels.

The case underscores the importance of blockchain transparency and responsible crypto practices. As scams like pig butchering continue to rise, public-private partnerships like this are essential for restoring trust in the digital asset space.

Read Also:

• From Frosty Fields to $0.008? Arctic Pablo Coin Emerges as Best Crypto to Invest While Moo Deng and Turbo Trends
• Ponke’s Lost in the Crowd: Troller Cat Is Picking Up the Torch with 1341% ROI Potential
• Downside Liquidity Gone: $111K in Sight?
• Regret Pi’s Missed Gains? Analysts Say Qubetics May Be the Top Altcoin Presale Ready for a 20% Surge on Listing
• Coinbase’s Key Role in $225M Pig Butchering Scam Bust