Coinbase, in collaboration with U.S. law enforcement, froze $225 million in USDT tied to scams in June 2025.
This decisive action underscores the increasing threat of crypto scams and the vital role of collaboration between industry and law enforcement.
Coinbase Freezes $225M in USDT from Scams
Coinbase, with U.S. law enforcement, froze $225 million in stolen USDT linked to pig butchering scams. This collaboration reflects heightened security efforts in tackling increasing crypto fraud incidents since early 2025.
Key players include Coinbase’s leadership team and law enforcement agencies like the U.S. Secret Service, FBI, and U.S. Attorney’s Office. Their actions align with previous measures against crypto-fraudulent activities.
Cryptomarket Vulnerabilities Exposed: $2.3M in Losses
The impact reaches over 130 Coinbase customers with $2.3 million identified in losses. This highlights the vulnerability of crypto platforms to social engineering scams, prompting urgent consumer protection measures within the industry.
Financially, the incidents spotlight risks associated with USDT and the wider crypto market. Historically rising fraud rates heighten regulatory interest, with 2024 seeing $5.8 billion in losses from crypto scams, a 66% rise from 2023.
Scams Surge: “Pig Butchering” and Crypto Fraud
Similar scams, like “pig butchering” and romance frauds, have escalated, with Bitcoin and Ethereum frequently targeted due to high liquidity. Such trends necessitate innovation in proactive security measures within the crypto sector.
Philip Martin, Chief Security Officer at Coinbase, calls these scams “a growing industry problem.” Improved security measures and collaboration with regulatory bodies may mitigate losses, building a more secure crypto environment.
“These types of scams are a huge problem in the industry, and it’s only getting worse.” – Philip Martin, Chief Security Officer, Coinbase
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