U.S. Secret Service Quietly Becomes a Leading Crypto Cop as Digital Fraud Soars: Bloomberg

The U.S. Secret Service, better known for protecting American presidents, has emerged as a major force in the fight against cryptocurrency crime, Bloomberg reported on Saturday.

Through its Global Investigative Operations Center (GIOC), the agency has seized nearly $400 million in digital assets over the past decade. Much of that sits in a single cold wallet that is now among the most valuable globally.

With digital fraud driving a majority of internet crime in the U.S., losses tied to crypto scams reached $9.3 billion in 2024, FBI data show. Investment frauds, fake platforms and extortion schemes disproportionately affect older victims, who lost nearly $2.8 billion last year. The GIOC uses open-source tools, subpoenas and blockchain analysis to trace stolen funds.

Led by attorney Kali Smith, the unit trains law enforcement globally, targeting jurisdictions vulnerable to lax oversight. A recent workshop in Bermuda underscored the risks facing crypto-friendly regions. Industry partners like Coinbase and Tether have assisted in large-scale recoveries, including $225 million in USDT tied to romance-investment scams.

“This training is part of our mission,” said Patrick Freaney, head of the New York field office. “We’ve been following the money for 160 years.”

CORRECT (July 7, 08:43 UTC): Corrects that the Bloomberg report was published on Saturday, not Monday.