California has shut down 42 fraudulent crypto websites, exposing a $6.5 million scam that drained victims of an average $146,306 each.
42 Fraud Sites Dismantled—How Scammers Built Fake Crypto Worlds to Steal Millions
California Attorney General Rob Bonta announced on March 10 that the state had taken decisive action against fraudulent cryptocurrency schemes by shutting down dozens of scam websites. The announcement details:
In 2024, the California Department of Justice shut down 42 fraudulent websites that scammed innocent victims out of at least $6.5 million, with an average loss per victim of $146,306.
These websites were used in “pig-butchering” scams, where victims were manipulated into investing in fake crypto platforms. Bonta stressed the need for continued vigilance, stating: “Scammers can use deception and emotional manipulation to take advantage of people looking for connection.” He credited the DOJ’s efforts and the Department of Financial Protection and Innovation (DFPI) for their collaboration in protecting consumers.
DFPI Commissioner KC Mohseni underscored the agency’s commitment to helping consumers detect and avoid scams. “As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant,” he stated, emphasizing the importance of verifying website domains and avoiding fraudulent platforms. The DOJ also identified ten key warning signs of fake crypto websites, including impossible rates of return, missing contact information, stolen content, and grammatical errors. These red flags were developed through the DOJ’s Cybercrime Section in partnership with the DFPI to disrupt internet-based financial crimes targeting Californians.
Pig-butchering scams typically begin with scammers contacting victims through text messages or social media, slowly gaining their trust before directing them to fraudulent investment sites. Victims are led to believe their investments are growing, often prompting them to invest even more. However, when they attempt to withdraw funds, they realize the site is fake, and their money is gone. Many victims hesitate to report the crime due to shame, but authorities urge them to come forward.
Bonta warned Californians to stay cautious: “Do not send money to anyone you have never met in person.” Officials encourage victims to report scams to law enforcement, the DOJ, DFPI, or the FBI’s Internet Crime Complaint Center.
Source: Bitcoin
