Now armed with blockchain forensics instead of briefcases of cash, the U.S. Secret Service is quietly becoming one of the most sophisticated crypto crime-fighting units in the world.
According to Bloomberg, its Global Investigative Operations Center has seized nearly $400 million in digital assets—stored in a single cold wallet—through operations targeting scams, fraud, and extortion.
One recent case illustrates the agency’s evolving reach: after a teenager was sextorted for $600, agents traced the crypto through a money mule to a Nigerian national allegedly responsible for thousands of illicit transactions.
The agency, led by investigative analyst Jamie Lam, specializes in digital financial crimes using software, subpoenas, and spreadsheets rather than traditional law enforcement tools.
The team traces cryptocurrency fraud through domain registrations, wallet connections, and blockchain analysis.
Romance scams drive majority of crypto losses
Americans reported $9.3 billion in cryptocurrency-related scams in 2024, accounting for more than half of the $16.6 billion in total internet crime losses reported to the FBI. Older victims suffered the largest losses at nearly $2.8 billion, primarily through fake investment platforms.
The Secret Service’s Kali Smith, who directs the agency’s cryptocurrency strategy, has conducted training workshops in over 60 countries to help local law enforcement unmask digital crimes.
“Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realize that this is occurring in our country,’” Smith said during a recent Bermuda training session.
Recent cases show the agency’s investigative capabilities. An Idaho teenager received sextortion demands after sending inappropriate photos online, paying $600 before contacting police.
Secret Service analysts traced payments through an American money mule to a Nigerian passport holder who had processed $4.1 million across nearly 6,000 transactions.
British authorities arrested the suspected extortionist upon landing in England, where he awaits extradition. The case involved reconstructing the crime through screenshots, receipts, and blockchain data analysis. It also underscores how digital sleuthing is redefining modern law enforcement—and how online exploitation has become a billion-dollar crimes.
The Secret Service collaborates with cryptocurrency companies for trace analysis and wallet freezes. Coinbase and Tether have publicly acknowledged assisting investigations, with one recovery involving $225 million in USDT linked to romance-investment scams.
“We’ve been following the money for 160 years,” said Patrick Freaney, head of the agency’s New York field office. “This training is part of that mission.”
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