FBI Saves $285M in Crypto Scams, Warns of AI-Driven Surge

The U.S. Federal Bureau of Investigation (FBI) has reported a significant achievement in its ongoing efforts to combat cryptocurrency investment fraud. In a recent operation, codenamed "Operation Level Up," the FBI managed to save potential victims approximately $285 million between January 2024 and January 2025.

The FBI's intervention came after identifying individuals in the midst of romance scams and "pig butchering" scams, where criminals exploit victims' emotions and trust to defraud them. The bureau notified these potential victims, warning them of the fraudulent activities and urging them to exercise caution. The FBI emphasized the importance of pausing and assessing the situation before acting quickly, as many scams rely on creating a false sense of urgency or isolation.

The FBI's efforts to combat crypto fraud have been ongoing, with Americans losing more than $5 billion to such scams in 2023 alone. Many of these scams targeted the elderly, highlighting the need for increased awareness and vigilance among vulnerable populations. In September, the FBI reported freezing $6 million in scammers' crypto wallets and seizing the assets, demonstrating its commitment to pursuing and apprehending those responsible for these crimes.

As the use of cryptocurrencies continues to grow, so too does the potential for fraudulent activities. Chainalysis, a blockchain analytics firm, has suggested that the number of crypto scams could surge in 2025, driven by advancements in artificial intelligence and increasingly sophisticated fraud techniques. The FBI has also issued warnings about criminals generating content for fraudulent websites, further underscoring the need for vigilance and education among the public.

In a separate development, the FBI was part of a 2024 effort with U.S. authorities to create a fake token and lure market makers into illegal wash trading. The U.S. Justice Department reported in October that 18 individuals and entities faced charges as a result of this sting operation.

Meanwhile, the leadership of the FBI has been in the spotlight following the inauguration of U.S. President Donald Trump in January 2020. Brian Driscoll, who has been serving as the acting FBI director, could soon be replaced by former federal prosecutor Kash Patel. The U.S. Senate Judiciary Committee voted along party lines to advance Patel's nomination for a floor vote, which is expected to take place in the near