The Global Investigative Operations Center (GIOC), a division of the US Secret Service, has recovered close to $400 million in cryptocurrency over the past ten years.
Most of these seized funds are stored in one offline wallet, which ranks among the largest government-held crypto reserves, according to a July 6 report by Bloomberg.
Using blockchain records, public information, and careful investigation, the GIOC follows the money behind online scams.
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Jamie Lam, the US Secret Service’s analyst, told officials in Bermuda that fraudsters often create fake investment websites, which show small early gains to trick victims before disappearing with their deposits. To lure targets, scammers often use photos of attractive people, though the person behind the screen is usually someone entirely different.
Agents work by piecing together small details, such as website registration data, transaction links, or even minor mistakes by suspects.
In one case, a single crypto transfer pointed investigators to another wallet tied to the same scheme. In another instance, a brief lapse in VPN protection revealed a scammer’s actual location.
Kali Smith leads the Secret Service’s crypto investigations and oversees training programs in more than 60 countries. These programs help officials in other nations recognize fraud and tighten oversight, particularly in areas where financial controls are weak or where residency programs are exploited.
Smith noted that many are surprised to learn such crimes are already active in their own regions.
Recently, the crypto exchange Coinbase helped the US Secret Service recover $225 million linked to crypto investment scams. How? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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