Washington, D.C. — With the rapid growth of cryptocurrency usage, the prevalence of related crimes is also on the rise. In response, law enforcement agencies are enhancing their digital capabilities to combat this emerging threat. The U.S. Secret Service, traditionally known for its protective duties, is now emerging as a central force in the fight against illicit cryptocurrency activities.
Since 2014, the Secret Service’s Global Investigative Operations Center has seized nearly $400 million in cryptocurrency associated with criminal wrongdoing. This figure includes a significant $225 million confiscation executed last month in collaboration with the FBI and the U.S. Attorney’s Office, reflecting an intensified effort to target illicit financial activities within the crypto space.
The agency employs a range of sophisticated tools, such as open-source intelligence, Internet Protocol (IP) tracking, and blockchain forensics, to monitor and investigate suspicious transactions. Kali Smith, who leads the Secret Service’s cryptocurrency strategy, noted that many law enforcement officials initially underestimate the extent of crypto-related crimes. “After just a week of training, some officers express surprise at how prevalent these issues are in their communities,” Smith said.
The scale of the problem is alarming. In 2024 alone, U.S. citizens lost an estimated $9.3 billion to cryptocurrency scams, with seniors accounting for about $2.8 billion of that total. The risks are not solely financial; reports have surfaced of extreme measures taken against victims, including physical torture for account credentials and abductions involving the families of young hackers.
The Secret Service’s shift in focus is deeply rooted in its history. Established in 1865 to combat counterfeiting after the Civil War, the agency has adapted over the years, taking on credit card fraud and, more recently, complex schemes involving cryptocurrency. Its evolving mission underscores the pervasive nature of online crime and the need for a robust response.
Collaboration between the Secret Service and the private sector has been crucial in these efforts. Several cryptocurrency firms are actively participating by freezing suspicious wallets and assisting in the recovery of stolen funds, helping to build effective public-private partnerships that boast a significant impact on criminal activities.
As the landscape of finance continues to evolve, the battle against cryptocurrency-related crime will likely require ongoing adaptation and innovation. With agencies like the Secret Service taking the lead, the complexities of this digital frontier are becoming clearer, equipping law enforcement to better address the challenges it poses.