California’s Department of Financial Protection and Innovation (DFPI) shut down 26 websites running cryptocurrency scams, uncovering losses of $4.6 million for consumers.
Fighting Crypto Fraud
This action is part of a larger effort to fight the rise of crypto fraud in the state. The DFPI used its “Crypto Scam Tracker,” which relies on consumer complaints, to identify these fraudulent schemes. Commissioner KC Mohseni stressed the importance of consumer vigilance and urged Californians to be cautious when dealing with unfamiliar platforms. He highlighted the importance of verifying website domains and avoiding crypto recovery scams. Reporting scams helps improve the effectiveness of the Crypto Scam Tracker.
The Scale of the Problem
Over 2,600 complaints were processed, revealing a wide range of scams, including fake Bitcoin mining, deceptive crypto games, and phony job offers. Investigators even found seven completely new types of crypto scams, showing how quickly scammers adapt their tactics.
Attorney General Rob Bonta’s Remarks
Attorney General Rob Bonta praised the work of his team and the DFPI for their collaboration in shutting down these websites. He emphasized the sophistication of modern scams and urged Californians to be cautious, especially about sending money to strangers.
A Growing Threat: Pig-Butchering Scams
The investigation also highlighted the rise of “pig-butchering” scams, where criminals manipulate victims into investing in fake cryptocurrency projects. These scams contributed to the staggering $9.9 billion in global crypto scam losses reported in 2024.
