California Cracks Down on Crypto Scams, Shutting Down 26 Fraudulent Websites
Officials announced the crackdown on Monday as part of a larger initiative aimed at curbing the rise of crypto-related scams in the state.
To combat fraudulent schemes, DFPI has been utilizing its “Crypto Scam Tracker,” a tool designed to identify scams based on consumer complaints. This effort is part of the department’s broader mission to protect financial consumers through regulation, enforcement, and education.
Officials Warn Consumers to Stay Alert
DFPI Commissioner KC Mohseni emphasized the importance of staying informed as cryptocurrency scams become more sophisticated.
“As crypto fraud tactics continue to evolve, our Crypto Scam Tracker serves as a crucial resource to help consumers stay vigilant,” Mohseni stated. “We encourage Californians to be cautious with unfamiliar platforms, verify website domains to avoid fake sites, and be wary of cryptocurrency recovery scams. Reporting fraud helps strengthen the Scam Tracker, making it even more effective in protecting the public.”
The investigation, which involved processing over 2,600 consumer complaints, exposed a wide range of deceptive schemes. These included fraudulent Bitcoin mining operations, fake crypto gaming platforms, and misleading job offers promising high returns. Authorities also identified seven new scam tactics, illustrating how cybercriminals continuously adapt to bypass security measures.
Growing Threats and Enforcement Efforts
California Attorney General Rob Bonta highlighted the increasing sophistication of crypto scams and stressed the importance of enforcement efforts.
“As scammers become more calculated in their deception, we must also advance our enforcement strategies,” Bonta said. “Fraudsters often exploit trust and emotions to manipulate victims. While our work is far from over, I want to recognize my team’s dedication in taking down these fraudulent crypto sites. I also appreciate our partnership with the DFPI in protecting consumers. I urge Californians to remain cautious and never send money to someone they have not met in person.”
“Pig-Butchering” and Global Crypto Fraud
Investigators noted a sharp rise in “pig-butchering” scams—long-term schemes in which fraudsters build trust with victims before convincing them to invest in non-existent cryptocurrency projects. These types of scams have played a significant role in the staggering $9.9 billion in global crypto-related fraud losses reported in 2024.
As cryptocurrency scams continue to evolve, authorities are urging consumers to remain vigilant, report suspicious activity, and utilize resources like the Crypto Scam Tracker to stay informed and protected.
Editorial Team
Reporter at Coindoo
