According to the FBI, crypto fraud cases surged by 45% last year, with losses totaling $5.6 billion.
This increase came as cryptocurrencies regained traction after the market decline in 2022. The FBI’s Internet Crime Complaint Center received nearly 69,500 reports of crypto fraud, which accounted for nearly half of all financial fraud losses in 2023.
The FBI’s report reveals that investment scams were the most common type of crypto fraud, responsible for about 71% of reported losses. These scams often deceive victims with promises of high returns from volatile crypto investments. Other significant fraud types included call center scams, where fraudsters pose as government officials to extract cryptocurrency.
Geographically, California, Florida, and Texas had the highest number of reported cases, with elderly individuals being particularly targeted. The FBI advised investors to be cautious and skeptical of offers that seem too good to be true.
Additionally, the FBI recently warned against using cryptocurrency transfer services not registered with the Financial Crimes Enforcement Network (FinCEN). The rise in fraud has not only shaken consumer confidence but also prompted increased regulatory attention. The FBI also cautioned crypto firms about potential attacks from North Korean hackers, highlighting ongoing security challenges.
An international arrest warrant has been requested for Hayden Davis, co-creator of the LIBRA token, which became the center of a major political scandal in Argentina.
Chris Larsen, the co-founder of Ripple, suffered a significant financial blow in 2024 when he lost over $661 million worth of XRP due to a security breach in the password management system LastPass.
Venture capitalist and Mission Gate founder George Bachiashvili is now facing imprisonment in Georgia after a court revoked his bail.
Hackers have exploited a vulnerability in DeFi aggregator 1inch’s resolver smart contract, leading to losses of over $5 million, according to blockchain security firm SlowMist.