California Shuts Down 42 Crypto Scam Sites—$6.5M Stolen
California Attorney General Rob Bonta announces yesterday March 10 that the state has taken down 42 fraudulent crypto websites linked to a complex scam that stole $6.5 million from investors.
The scam—also known as a “pig-butchering” scam—tricked victims into thinking they were investing in real crypto platforms. Instead, scammers lured users into fake trading sites, fabricated account growth and then drained their funds when they tried to withdraw.
💥STAY ALERT:
California Shuts Down 42 Crypto Scam Sites
Regulators bust $6.5M fraud, shutting down 42 fake platforms that tricked investors with false promises. #CryptoScam #Bitcoin #CryptoFraud— scoopist (@scoopistin) March 12, 2025
“These criminals prey on trust and emotion to deceive investors,” Bonta said. He credited the DOJ and DFPI for their work in identifying and shutting down these illegal operations.
How the Scam Stole Millions
Investigators found the average loss per victim was $146,306, with some losing their entire life savings.
The scam followed a standard but effective playbook:
Initial Contact: Scammers reached out via text or social media, posing as friends or financial advisors.
Trust-Building Phase: Over weeks or months, fraudsters gained victims’ trust before introducing them to a “safe” investment opportunity.
Fake Trading Sites: Victims were led to scam sites that looked like real crypto platforms, showing fake profits to get them to deposit more.
Withdrawal Block: Once victims tried to cash out, the site would shut down or demand more money, and steal their funds.
These scams often go unreported because victims are ashamed or think law enforcement can’t get their money back. But authorities urge anyone affected to come forward and file a report with the DOJ, DFPI or FBI’s Internet Crime Complaint Center.
Warning Signs and Consumer Protections
As crypto scams evolve, DFPI Commissioner KC Mohseni said education is key, pointing to the agency’s Crypto Scam Tracker which helps Californians identify fraudulent websites before investing.
🚨 42 Crypto Fraud Sites Busted! 🚨
California just crushed a $6.5M “pig-butchering” scam ring, where victims lost an average of $146K each. Scammers tricked people into fake investments, draining their wallets. With AG Rob Bonta and the DOJ leading the charge, the crackdown is… pic.twitter.com/9zT0yKZTOg
— WARANDCOIN (@Warandcoin) March 12, 2025
Authorities outlined ten key warning signs of crypto fraud, including:
Unrealistic investment returns (e.g., “guaranteed 10% daily profits”)
Poorly designed websites with grammatical errors
Lack of verifiable contact information
Requests for upfront fees before withdrawals
Pressure to act quickly before an “opportunity disappears”
Attorney General Bonta issued a strong warning to the public: “Do not send money to anyone you have never met in person.”
With California ramping up enforcement, officials stress that vigilance and education remain the strongest defense against the growing threat of crypto fraud.
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