FBI Cracks Down on Crypto Scam, Prevents $285 Million in Losses

The FBI is ramping up efforts to combat a rising cryptocurrency scam known as "pig butchering," where fraudsters build trust with victims before tricking them into fake investments.

Through its initiative, Operation Level Up, the agency is using advanced tracking methods to identify individuals in the middle of being defrauded and intervene before they lose their money. Since January, the FBI has reportedly alerted over 4,300 potential victims, preventing losses estimated at $285 million.

Some victims were on the verge of making massive investments before being contacted. One was set to invest another $1 million, another planned to sell their house for $500,000, and a third withdrew the same amount from their retirement account—all of whom stopped after the FBI stepped in.

Many victims were unaware they were being scammed, with some experiencing severe emotional distress. The FBI’s Victim Services Division has been involved in cases requiring support, including suicide prevention efforts.

James Barnacle, deputy assistant director of the FBI’s Criminal Investigative Division, emphasized the urgency of the situation, stating that the scam is a growing issue affecting many Americans, making it crucial for authorities to intervene.