California Shuts 26 Crypto Scam Websites, Prevents $4.6M Losses

California has taken decisive action against cryptocurrency fraud by shutting down 26 scam websites, preventing an estimated $4.6 million in losses. This operation was conducted by the Department of Financial Protection and Innovation (DFPI) in collaboration with the California Department of Justice (DOJ). The initiative is part of a broader effort to combat digital financial fraud and protect investors.

The DFPI utilized its Crypto Scam Tracker platform to identify and investigate these fraudulent websites. In 2024 alone, over 2,668 complaints were filed, leading to 303 fraud alerts. The tracker has seen a significant increase in usage, with more than 400,000 users accessing it. This surge in reported cases has enabled law enforcement to uncover more scams, thereby minimizing financial losses for consumers.

Public officials have issued warnings about the dangers of online investment activities. Commissioner KC Mohseni of the DFPI advised the public to stay vigilant and informed about the evolving nature of crypto scams. Consumers are urged to verify the authenticity of platforms before engaging in financial transactions and to report any suspicious activities they encounter.

Attorney General Rob Bonta highlighted the sophisticated tactics used by scammers, which include emotional manipulation and deception. He commended the teams involved in the operation and urged everyone to remain alert. The DFPI Scam Tracker has been enhanced to include new types of fraud, such as phony mining operations, fake gaming websites, and job schemes targeting job seekers. Additionally, digital asset theft through wallet drain attacks and fraudulent investment platforms using AI-based technology are emerging threats.

California's actions demonstrate a strong commitment to protecting consumers from crypto-related fraud. Officials advise caution when considering online investment opportunities and encourage reporting any suspicious platforms. By staying informed and proactive, consumers can help prevent further financial harm and contribute to a safer digital investment environment.