California “DOJ” close down 42 websites involved with crypto scam

Crypto scam news in california: 

successfully shut down 42 scam websites operated by international criminals, revealing another $6.5 million in consumer losses

California authorities are stepping up their efforts to fight cryptocurrency fraud after uncovering millions in consumer losses. In 2024, officials shut down 26 fraudulent crypto websites and identified over $4.6 million in stolen funds. These scams have become more sophisticated, prompting agencies to develop new tools to track and prevent them. The California Department of Financial Protection and Innovation (DFPI) has played a key role in investigating these frauds and keeping consumers informed.

To tackle the growing number of scams, DFPI introduced a "Crypto Scam Tracker," which helps monitor and expose fraudulent activities. This tool processed more than 2,600 complaints and uncovered various types of scams. Among them are fake Bitcoin mining schemes, deceptive crypto job offers, and fraudulent gaming platforms. Additionally, scammers are now using artificial intelligence (AI) to create misleading investment opportunities that appear more convincing to unsuspecting victims.

Read also:

The California Department of Justice (DOJ) also reported major actions against fraudsters. It successfully shut down 42 scam websites operated by international criminals, revealing another $6.5 million in consumer losses. Many of these scams promised high returns on investments but left victims with nothing. Authorities warn that as crypto scams evolve, staying informed and cautious is the best way to avoid falling for these fraudulent schemes.

One of the most alarming trends in crypto fraud is the rise of "pig-butchering" scams. This type of scam involves criminals forming fake relationships with victims through social media or dating apps. Once trust is established, the fraudsters convince their victims to invest in fake cryptocurrency projects. Eventually, when victims try to withdraw their money, they realize they have been scammed, with no way to recover their funds.

Law enforcement officials emphasize that scammers use emotional manipulation to deceive people looking for genuine connections. California Attorney General Rob Bonta warned that these schemes prey on trust and loneliness, making them particularly dangerous. Reports indicate that these scams are increasing rapidly, with more victims losing significant amounts of money. The DOJ and DFPI continue to educate the public on how to recognize and report suspicious activity.

Read also:

According to blockchain analysis firm Chainalysis, pig-butchering scams have generated nearly 40% more revenue compared to 2023. Victim deposits in these fraudulent schemes have increased by an alarming 210%. These scams contribute significantly to the estimated $9.9 billion in crypto-related fraud losses reported in 2024. With scams becoming more advanced, the challenge of stopping them is growing.

Experts warn that artificial intelligence is making crypto fraud even harder to detect. Generative AI can create realistic-looking fake websites, investment opportunities, and advertisements. Fraudsters are using these tools to deceive victims on a large scale. As scams become more sophisticated, authorities are urging consumers to stay alert, verify investment opportunities, and report any suspicious activities to help combat this rising threat.