Coinbase played a pivotal role in the historic $225 million fraud recovery by leveraging its blockchain analytics capabilities. The company traced stolen USDT across multiple wallets linked to pig butchering scams, identifying over 130 victims worldwide. This involved sophisticated chain analysis to uncover connections between fake investment platforms and romance scams.
The investigation revealed that many scam operations used trafficked individuals as money mules. Coinbase’s subpoena compliance provided critical evidence that enabled the U.S. Secret Service to freeze assets. This collaboration demonstrated how exchanges can effectively partner with law enforcement to combat crypto crime.
Post-seizure, Coinbase is facilitating victim restitution by urging affected users to file claims. The case sets a precedent for using blockchain transparency against organized crime, showcasing how regulated entities can transform crypto’s pseudonymous nature from a vulnerability into an investigative strength.
