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26 scam websites connected to fraudulent digital asset schemes have been shut down by the California Department of Financial Protection and Innovation (DFPI), which has taken strong action against cryptocurrency fraud. Following the discovery of $4.6 million in customer losses, officials announced the crackdown.
This enforcement action is a component of the state’s larger anti-crypto fraud strategy, which tracks and exposes fraudulent activities using DFPI’s Crypto Scam Tracker.
The Crypto Scam Tracker, launched to help consumers identify and report scams, played a crucial role in uncovering these fraudulent activities. DFPI Commissioner KC Mohseni emphasized the importance of staying informed.
“As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant. It is a vital part of our enforcement strategy and role as a financial regulator, educator and enforcement agency. We urge all Californians to exercise caution with unknown platforms, verify website domains to avoid fraudulent imitations, and stay wary of crypto recovery scam sites. Staying informed and reporting scams to the DFPI strengthens the Crypto Scam Tracker, making it an even more effective tool in protecting consumers.”
Investigators processed over 2,600 complaints, uncovering scams involving fake Bitcoin mining, fraudulent crypto gaming platforms, and deceptive job offers. They also identified seven new scam types, highlighting how fraudsters continually evolve their tactics.
California Attorney General Rob Bonta acknowledged the growing complexity of crypto fraud and commended enforcement efforts.
“As scammers grow increasingly sophisticated and calculated, so must our enforcement. Scammers can use deception and emotional manipulation to take advantage of people looking for connections. While there is much work to be done, I want to take a moment to celebrate the hard work of my team, who took action to protect consumers by shutting down these fake cryptocurrency websites last year. I would also like to thank our state partners at the Department of Financial Protection and Innovation for their collaboration. I urge Californians to be vigilant and protect their finances: Do not send money to anyone you have never met in person.”
One major scam type officials highlighted is “pig-butchering,” where criminals manipulate victims into investing in non-existent crypto projects. This type of fraud contributed significantly to the $9.9 billion in global crypto scam losses reported in 2024.