California Government Shuts Down 26 Different Crypto Scam Websites, Uncovering $4,600,000 in Consumer Losses
The California Department of Financial Protection and Innovation (DFPI) says it has shut down 26 cryptocurrency scam websites and identified $4.6 million in consumer losses, officials announced Monday.
In a new announcement, the DFPI says the crackdown is part of a broader initiative to combat increasing crypto-related fraud in the state, utilizing the department’s “Crypto Scam Tracker” to identify fraudulent schemes based on consumer complaints.
Says DFPI Commissioner KC Mohseni,
“As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant.
It is a vital part of our enforcement strategy and role as a financial regulator, educator and enforcement agency. We urge all Californians to exercise caution with unknown platforms, verify website domains to avoid fraudulent imitations, and stay wary of crypto recovery scam sites. Staying informed and reporting scams to the DFPI strengthens the Crypto Scam Tracker, making it an even more effective tool in protecting consumers.”
Officials reportedly processed over 2,600 complaints, uncovering scams ranging from fake Bitcoin (BTC) mining operations to deceptive crypto gaming platforms and fraudulent job offers. The investigation also identified seven new scam types, highlighting hackers’ evolving tactics.
Says Attorney General Rob Bonta,
“As scammers grow increasingly sophisticated and calculated, so must our enforcement.
Scammers can use deception and emotional manipulation to take advantage of people looking for connections. While there is much work to be done, I want to take a moment to celebrate the hard work of my team, who took action to protect consumers by shutting down these fake cryptocurrency websites last year. I would also like to thank our state partners at the Department of Financial Protection and Innovation for their collaboration. I urge Californians to be vigilant and protect their finances: Do not send money to anyone you have never met in person.”
Investigators also noted the prevalence of “pig-butchering” scams, where fraudsters manipulate victims into investing in non-existent cryptocurrency projects. Such schemes have contributed significantly to the $9.9 billion in global crypto scam losses reported in 2024.
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Featured Image: Shutterstock/delcarmat/Vladimir Sazonov
