California shut down 42 fraudulent crypto websites linked to a $6.5 million scam. Officials warn against “pig-butchering” schemes and urge victims to report fraud.
California Takes Action Against Widespread Crypto Fraud
California has shut down 42 fraudulent cryptocurrency websites, exposing a $6.5 million scam that drained victims of an average $146,306 each, according to an announcement by Attorney General Rob Bonta on March 10, 2025.
How the Crypto Scams Operated
The fraudulent sites were part of “pig-butchering” scams, where victims were manipulated into fake crypto investments. Scammers gained victims’ trust through social media or text messages before directing them to platforms that falsely displayed increasing returns. When victims attempted to withdraw their funds, they discovered the site was fraudulent and their money was gone.
Officials Warn Against Crypto Fraud
Attorney General Bonta emphasized the importance of staying vigilant, stating:
“Scammers can use deception and emotional manipulation to take advantage of people looking for connection.”
He credited the California Department of Justice (DOJ) and the Department of Financial Protection and Innovation (DFPI) for their efforts in protecting consumers.
Identifying Fake Crypto Websites
DFPI Commissioner KC Mohseni highlighted the Crypto Scam Tracker, a tool to help consumers recognize scams. Authorities identified ten warning signs, including:
- Unrealistic investment returns
- Missing contact information
- Stolen website content
- Poor grammar and spelling errors
These findings were developed through the DOJ’s Cybercrime Section, which collaborates with DFPI to combat internet-based financial crimes.
How to Protect Yourself
Officials advise not to send money to anyone you have not met in person and to verify the legitimacy of investment platforms. Victims are urged to report scams to the DOJ, DFPI, or the FBI’s Internet Crime Complaint Center.
Stay informed and protect yourself from crypto fraud. If you suspect a scam, report it immediately.
