Catenaa, Sunday, March 16, 2025-California regulators have shut down 26 fraudulent cryptocurrency websites, uncovering $4.6 million in consumer losses as part of a broader crackdown on digital asset scams.
The California Department of Financial Protection and Innovation (DFPI), in partnership with the state’s Department of Justice, used its Crypto Scam Tracker tool to identify and dismantle fraudulent platforms. The tool, which collects consumer complaints, has been instrumental in detecting evolving scam tactics, including Bitcoin mining fraud and fake investment schemes.
DFPI Commissioner KC Mohseni urged consumers to remain cautious when dealing with unfamiliar platforms, emphasizing that the tracker is a critical resource for education and enforcement. “Staying informed and reporting scams to the DFPI strengthens the Crypto Scam Tracker, making it an even more effective tool in protecting consumers,” he said.
The regulator recently updated its scam tracker with new features, including screenshots of fraudulent interactions. It has also identified emerging threats, such as crypto gaming scams that lure victims with play-to-earn models and fraudulent job offers.
Additionally, the DFPI released a “Pig Butchering” scam playbook, warning users about a type of fraud that involves long-term social manipulation to steal funds. A recent Chainalysis report found that pig butchering scams saw a nearly 40% increase in revenue year-over-year.
California has been a major target for crypto fraud, with the FBI reporting $1.2 billion in losses statewide in 2023.
