Coinbase Helps Feds Freeze $225M in Crypto Tied to Major Scam

Coinbase assisted U.S. authorities in freezing $225 million in stolen USDT from pig butchering scams, helping track the funds and identify over 130 victims.

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Posted June 25, 2025 at 10:02 am EST.

Coinbase said it played a pivotal role in a major U.S. law enforcement operation that resulted in the seizure of approximately $225 million in crypto stolen from “pig butchering” scams.

The U.S. Secret Service, FBI, and U.S. Attorney’s Office filed an order last week to seize the funds, which were mostly in the form of Tether-issued USDT.

Coinbase’s compliance and security teams collaborated with federal agents to trace the illicit funds on the blockchain, identifying how the stolen assets moved through various wallets and linking them to accounts on its platform.

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The exchange also helped identify over 130 Coinbase customers who were victims of the scam, with losses totaling $2.3 million.

“As part of the seizure, Tether burned the $225 million in frozen USDT onchain,” said Coinbase.

“The equivalent amount of new USDT was then issued and transferred to a USSS-controlled wallet, where it will be held until distribution to verified victims.”