Crypto scams continue to plague the digital asset space, with the FBI reporting that Americans lost at least $9.3 billion to crypto-related fraud in 2024.
This accounted for more than half of the total $16.6 billion in internet crime losses reported last year.
According to the FBI's annual report, there was a dramatic rise in crypto-related fraud complaints, with more than 150,000 cases reported in the US alone—up 66% from 2023.
The most alarming aspect of this surge is the financial toll it took on the American public.
The FBI stated,
“Fraud represented the bulk of reported losses in 2024, with crypto investment schemes leading the way,”
A significant portion of these losses stemmed from fraudulent investment platforms and what’s known in the scam community as ‘pig butchering.’
The 60+ age group emerged as the most vulnerable, with victims in this category reporting over $2.8 billion in losses.
This demographic accounted for a large proportion of complaints, reflecting the growing trend of older individuals being targeted.
Source: FBI
In response to these rising numbers, the FBI launched Operation Level Up in early 2024.
Through this initiative, the Bureau successfully prevented $286 million worth of crypto scams by intervening early and identifying over 4,300 victims.
Investment-related scams were by far the most common, with losses reaching a massive $5.8 billion in the US alone.
Source: FBI
The scam method known as ‘pig butchering’ involves creating fake profiles to lure victims into investing in fraudulent platforms.
Once the scammers have built trust with their targets, they often convince them to part with large sums, promising high returns.
This tactic has been highly effective, and the FBI's report highlights that it is becoming an increasingly popular method of attack.
The FBI has ramped up its efforts to tackle the growing wave of crypto scams.
In addition to Operation Level Up, which prevented nearly $286 million in losses, the Bureau's Recovery Asset Team successfully froze $561 million worth of crypto assets.
Using the Financial Fraud Kill Chain process, the team managed to halt a significant number of illicit transactions, achieving a 66% success rate in freezing funds.
Source: FBI
The international scale of crypto scams is equally alarming.
Blockchain analytics firm Chainalysis estimated that illicit crypto activity globally amounted to around $41 billion in 2024, with 25% of that linked to scams, extortion, trafficking, and hacking.
Source: Chainalysis
High-profile cases, such as the $1.4 billion theft from the Bybit exchange and the $1.3 billion looted by North Korean hackers, have underscored the scale and complexity of these crimes.
Experts warn that scams may reach even greater heights in 2025, with new technologies, particularly generative AI, enabling fraudsters to scale their operations more efficiently.
Chainalysis has predicted that the use of AI will make it easier and cheaper for bad actors to execute scams, potentially making 2025 the year with the highest number of crypto fraud cases yet.
As the crypto space continues to grow, so too does the need for vigilance.
Both law enforcement and individuals will have to remain increasingly aware of the evolving tactics employed by scammers to protect their digital assets.
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