California shuts down 42 cryptocurrency scam sites - $6.5 million stolen in massive fraud
Blockchain editor
California shuts down 42 fraudulent cryptocurrency websites, exposing a $6.5 million scam that cost victims an average of $146,306.
42 fraudulent websites taken down — how scammers built fake crypto worlds to steal millions.
California Attorney General Rob Bonta announced on March 10 that the state government has taken decisive action against fraudulent cryptocurrency schemes, shutting down dozens of scam websites. The announcement details:
In 2024, the California Department of Justice shut down 42 fraudulent websites that defrauded innocent victims of at least $6.5 million, with an average loss of $146,306 per victim.
The websites were used in a “pig slaughter” scam, where victims were manipulated into investing in fake crypto platforms. Bonta stressed the need for continued vigilance, saying, “Scammers can use deception and emotional manipulation to take advantage of those seeking connection.” He praised the Department of Justice’s efforts and the Department of Financial Protection and Innovation (DFPI) for their work in protecting consumers.
DFPI Commissioner KC Mohseni emphasized the agency’s commitment to helping consumers detect and avoid scams. “DFPI’s Crypto Scam Tracker helps consumers stay alert as crypto scams evolve,” he noted, stressing the importance of verifying website domains and avoiding scam platforms. The DOJ also identified the top 10 warning signs of fake crypto websites, including impossible rates of return, missing contact information, plagiarized content, and grammatical errors. These red flags were developed through the DOJ’s Cyber Crime Unit in partnership with the DFPI to combat web-based financial crimes targeting Californians.
“Pig slaughter” scams typically begin with scammers contacting victims via text or social media, slowly gaining their trust, and then directing them to fraudulent investment websites. Victims are misled into believing their investments are growing, often investing more money as a result. However, when they try to withdraw their funds, they realize the site is fake and their money is gone. Many victims are reluctant to report the crime due to shame, but authorities urge them to come forward.
Bonta warned Californians to be cautious: "Don't send money to someone you've never met." Officials encourage victims to report the scam to law enforcement, the Department of Justice, DFPI or the FBI's Internet Crime Complaint Center.
