Kraken Partners with U.S. Secret Service in $225M Crypto Fraud Bust

Kraken is proud to announce its collaboration with the United States Secret Service (USSS) in a landmark investigation dismantling a sophisticated cryptocurrency fraud network. The operation targeted 'pig butchering' scams - a social engineering tactic where fraudsters cultivate trust with victims before convincing them to invest in fake crypto schemes.

The investigation resulted in the largest-ever crypto seizure by the USSS, recovering approximately $225 million in stolen funds. The assets were initially frozen by Tether in 2023 after being linked to pig butchering scams in a U.S. Department of Justice probe. The stolen funds were traced to perpetrator accounts at a non-Kraken centralized exchange.

In March 2024, Kraken joined a weeklong law enforcement operation, with its compliance and investigative teams providing real-time blockchain analytics and account information. This cooperation was instrumental in identifying nearly 500 victims and supporting the USSS in obtaining the seizure warrant for the historic recovery.

'Protecting clients is our highest priority,' stated David Zacks, Kraken's Deputy Chief Compliance Officer. 'Our compliance framework, security protocols, and on-chain investigative capabilities demonstrate our commitment to safeguarding the crypto ecosystem.'

Kraken maintains strict policies to protect user privacy while fulfilling legal obligations to assist law enforcement. The exchange continues to actively combat fraud and support victim recovery efforts within the crypto community.

Potential fraud victims are encouraged to report incidents to local authorities and the FBI's Internet Crime Complaint Center at ic3.gov to help prevent future scams.