tl;dr
The California Department of Financial Protection and Innovation (DFPI) has closed 26 cryptocurrency scam websites, uncovering $4.6 million in consumer losses. The crackdown is part of an effort to combat rising crypto-related fraud in the state, utilizing the department’s “Crypto Scam Tracker” base...
The California Department of Financial Protection and Innovation (DFPI) has taken action against cryptocurrency scams, shutting down 26 fraudulent websites and identifying $4.6 million in consumer losses. This crackdown is part of a broader effort to combat the increasing prevalence of crypto-related fraud in the state. The DFPI's "Crypto Scam Tracker," based on consumer complaints, has played a pivotal role in uncovering various scams, including fake Bitcoin mining operations and deceptive crypto gaming platforms.
Attorney General Rob Bonta stressed the importance of consumer vigilance and protection against financial scams, particularly highlighting the dangers of "pig-butchering" schemes, which have contributed significantly to the global crypto scam losses. The DFPI officials processed over 2,600 complaints and identified seven new scam types, emphasizing the evolving tactics employed by scammers.
DFPI Commissioner KC Mohseni emphasized the importance of staying informed, exercising caution with unknown platforms, and reporting scams to strengthen consumer protection. Meanwhile, Attorney General Rob Bonta underscored the need for increased enforcement and warned Californians against sending money to unknown entities, urging vigilance in financial matters.
Investigators also shed light on the prevalence of "pig-butchering" scams, which have played a significant role in the reported $9.9 billion global crypto scam losses in 2024, showcasing the pervasive impact of fraudulent cryptocurrency projects.