The California Division of Monetary Safety and Innovation (DFPI) says it has shut down 26 cryptocurrency rip-off web sites and recognized $4.6 million in client losses, officers introduced Monday.
In a brand new announcement, the DFPI says the crackdown is a part of a broader initiative to fight rising crypto-related fraud within the state, using the division’s “Crypto Rip-off Tracker” to establish fraudulent schemes primarily based on client complaints.
Says DFPI Commissioner KC Mohseni,
“As crypto scams evolve, DFPI’s Crypto Rip-off Tracker helps empower shoppers to remain vigilant.
It’s a important a part of our enforcement technique and function as a monetary regulator, educator and enforcement company. We urge all Californians to train warning with unknown platforms, confirm web site domains to keep away from fraudulent imitations, and keep cautious of crypto restoration rip-off websites. Staying knowledgeable and reporting scams to the DFPI strengthens the Crypto Rip-off Tracker, making it an much more efficient instrument in defending shoppers.”
Officers reportedly processed over 2,600 complaints, uncovering scams starting from pretend Bitcoin (BTC) mining operations to misleading crypto gaming platforms and fraudulent job affords. The investigation additionally recognized seven new rip-off sorts, highlighting hackers’ evolving ways.
Says Legal professional Normal Rob Bonta,
“As scammers develop more and more subtle and calculated, so should our enforcement.
Scammers can use deception and emotional manipulation to benefit from individuals searching for connections. Whereas there may be a lot work to be accomplished, I wish to take a second to have a good time the arduous work of my staff, who took motion to guard shoppers by shutting down these pretend cryptocurrency web sites final 12 months. I might additionally wish to thank our state companions on the Division of Monetary Safety and Innovation for his or her collaboration. I urge Californians to be vigilant and shield their funds: Don’t ship cash to anybody you’ve by no means met in individual.”
Investigators additionally famous the prevalence of “pig-butchering” scams, the place fraudsters manipulate victims into investing in non-existent cryptocurrency tasks. Such schemes have contributed considerably to the $9.9 billion in world crypto rip-off losses reported in 2024.
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