Crypto Scams and Financial Manipulation: Why Dave Ramsey's Warnings Matter Now More Than Ever

Charles HayesMonday, Jun 23, 2025 12:58 pm ET
46min read

In an era where cryptocurrencies like Bitcoin and Ethereum promise overnight riches, financial guru

Ramsey's warnings about their risks have never been more prescient. His advice to avoid speculative assets, prioritize proven wealth-building strategies, and recognize manipulative tactics in relationships is underscored by a growing tide of crypto-related fraud—and cases like the Shelby Cason scam, which recently made headlines.

The Risks of Crypto: Ramsey's Case Against Speculation

Ramsey has long labeled crypto “risky business,” comparing it to gambling. His critique hinges on four key red flags:
1. Extreme Volatility: Crypto prices swing wildly due to speculation, not fundamentals. As Ramsey notes, “Someone sneezes and the price drops!”
2. Unproven Returns: Unlike stocks or mutual funds with decades of track records, crypto's “Wild West” nature offers no reliable path to long-term growth.
3. Transparency Gaps: From anonymous creators like Bitcoin's Satoshi Nakamoto to complex blockchain technology, crypto lacks clarity, leaving investors vulnerable to fraud.
4. Regulatory Risks: Governments worldwide are cracking down, with the U.S. Treasury sanctioning platforms like FUNNULL and the SEC targeting unregistered securities.

Ask Aime: What's the outlook for the stock market after Dave Ramsey's warnings about crypto risks?

While proponents argue crypto offers diversification and innovation, Ramsey's team dismisses these benefits, citing unregulated markets, cyberattacks, and scams as far greater threats.

The Shelby Case: When Relationships Become Traps

The 2023 case of Shelby Cason illustrates how crypto scams exploit human vulnerabilities. Cason, pressured by a scammer posing as a law enforcement agent, transferred $14,800 to a Bitcoin wallet after being falsely accused of possessing illegal content. Though he reported the fraud, the Iowa Supreme Court ruled against him in 2025, awarding the seized cash to Bitcoin Depot—the ATM operator—because there was no proof the company knew of the scam.

This decision highlights two critical lessons:
1. Contracts Trump Compassion: Bitcoin Depot's terms of service stated cash deposits became their property immediately. Even victims of fraud must navigate strict legal terms.
2. Third-Party Duress Isn't Enough: Courts require proof that the platform had “reason to know” of the scam—something generalized warnings on ATMs cannot provide.

Red Flags in Relationships: Ramsey's “Energy Vampires”

Ramsey's warnings extend beyond crypto to the people we trust. He identifies “energy vampires”—individuals who:
- Pressure you to invest in high-risk assets without justification.
- Discourage financial independence, such as cashing out a 401(k).
- Exhibit resentment toward others' success or blame others for their struggles.

The Shelby case fits this mold: his “boyfriend” (later revealed to be a scammer) leveraged emotional manipulation to push a crypto transaction. Ramsey's advice? Cut ties with such individuals and surround yourself with those who prioritize stability.

Data-Driven Caution: Crypto vs. Proven Strategies

To quantify Ramsey's warnings, consider the numbers:

SPY Closing Price

Example query result: Bitcoin's value plummeted from nearly $69,000 in November 2021 to under $30,000 by mid-2023—a 57% drop. Meanwhile, the S&P 500 grew steadily, gaining ~18% over the same period.

The Ramsey Roadmap for Investors

Ramsey's advice remains clear:
1. Pay Off Debt First: Crypto isn't for those drowning in loans.
2. Build an Emergency Fund: $3–6 months of expenses provide a safety net.
3. Focus on Proven Assets: Allocate 15% of income to low-risk growth stock mutual funds (e.g., VOO or SPY), which have historically outperformed crypto.
4. Avoid High-Pressure Schemes: If someone insists on urgency or secrecy, walk away.

Final Take: Prioritize Stability Over Speculation

The Shelby case and Ramsey's warnings converge on one truth: crypto's risks far outweigh its rewards for most investors. While innovation in blockchain may have merit, the average individual's path to wealth lies in discipline, diversification, and avoiding manipulative traps.

As Ramsey puts it: “Don't let a scammer—or a 'romance'—convince you to bet your future on a gamble.” Stick to strategies that work, and let others chase the next crypto “moon.”

Investment takeaway: For 2025, allocate funds to broad-market index funds (e.g., VTI, IWV) and avoid crypto unless you can afford to lose every dollar. Protect your relationships—and your wallet.