FBI Rescues 4,300 Crypto Victims, Prevents $285M Loss

The FBI has successfully rescued over 4,300 victims from cryptocurrency investment scams through its proactive initiative, Operation Level Up. The joint law enforcement operation has led to an estimated $285 million in loss prevention, highlighting the increasing risks of crypto fraud.

Crypto scams often begin with real-looking and trustworthy digital contacts. Scammers employ various strategies to build trust with their victims in professional, friendly, or romantic contexts. Once trust is established, they present investment opportunities in cryptocurrency, which appear legitimate due to attractive profit possibilities. However, all connections and investment opportunities in these schemes prove to be false. In extreme cases, victims may lose their life savings, retirement funds, and even their homes.

Deputy Assistant Director James Barnacle from the FBI Criminal Investigative Division has stated that crypto scam cases have emerged as a significant problem, affecting numerous American people. The FBI has designated scams involving these fraudulent relationship schemes as "pig butchering" among fraud types.

The tracking abilities of Operation Level Up enable agents to detect potential scam victims. By directly contacting these individuals, agents can prevent them from investing additional funds. In one instance, the FBI prevented a victim from making a $1 million investment just before the potential transaction. The victim heeded the FBI's warning and avoided making a $500,000 investment.

Crypto scammers possess high levels of skill in tricking people by creating deceptive investment platforms that offer fake early returns to win victims' trust. Tech-savvy middle-aged individuals between 30 to 60 years old make up the majority of victims who seek investment possibilities.

The Internet Crime Complaint Center of the FBI recorded $3.9 billion in cryptocurrency-based investment fraud losses during 2023. However, it is important to note that unreported cases of fraud represent only a small portion of the total number of cryptocurrency investment scams that exist.

The FBI encourages the public to thoroughly evaluate investment choices before committing to any transactions. Operation Level Up continues its work with domestic and international partners to disrupt fraudulent operations and protect the public from future scams.