California DOJ warns of rising cryptocurrency scams, shuts down dozens of fraudulent websites
California shut down 42 websites in 2024 through which residents lost a combined total of $6.5 million.
California Attorney General Rob Bonta has issued a warning to Californians about the increasing threat posed by fraudulent cryptocurrency websites, particularly "pig-butchering" scams.
The California Department of Justice (DOJ) reported shutting down 42 fraudulent cryptocurrency websites in 2024, in a statement released on March 10. These scams resulted in victims losing at least $6.5 million, with an average individual loss of approximately $146,306.
“As scammers grow increasingly sophisticated and calculated, so must our enforcement,” said Attorney General Bonta. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection… I urge Californians to be vigilant and protect their finances: Do not send money to anyone you have never met in person."
Despite the DOJ's efforts, shutting down 42 fraudulent websites is only a small step compared to the thousands of fake cryptocurrency websites operating worldwide, with new ones appearing every day.
To address this growing issue, the California Department of Financial Protection and Innovation recently launched a Crypto Scam Tracker. The tool lists known fraudulent websites along with reports submitted by victims. Currently, however, the tracker has identified only 334 such schemes.
The DOJ outlined several key indicators of fraudulent cryptocurrency websites, including:
Unrealistic promises of high investment returns
Lack of legitimate contact information
Use of stolen or borrowed images and content
Fake or incorrect physical addresses
Offers of generous prizes or bonuses
Inconsistent phone numbers and addresses
Outdated website content
Poor grammar and translations
Absence from industry exchange listings, such as CoinMarketCap.com