By Maya Patel

On March 10, 2025, the Department of Financial Protection and Innovation (DFPI) announced that—through its new partnership with the Department of Justice (DOJ)—the state has shut down more than 26 different crypto scam websites, preventing further financial harm to Californians. DFPI and the DOJ have intensified their combined efforts to combat fraudulent cryptocurrency schemes that have defrauded consumers of millions of dollars. This collaborative crackdown, bolstered by DFPI’s nationally recognized Crypto Scam Tracker, continues to expose illicit operations designed to deceive investors through “pig-butchering” scams and other sophisticated fraud tactics.

Pig-butchering scams are a type of long-term financial fraud in which scammers build trust with victims over time, often through social engineering tactics, before convincing them to invest in fraudulent cryptocurrency schemes that ultimately result in the loss of all deposited funds. To educate and inform consumers about these schemes, DFPI recently published the “Pig Butchering Scam Playbook,” a comprehensive guide detailing how these scams operate, warning signs to watch for, and steps consumers can take to protect themselves. The playbook includes real-world examples, case studies, and expert insights into how fraudsters manipulate victims, and is freely accessible to California consumers on DFPI’s website.

On March 10, 2025, Attorney General Rob Bonta announced the results of an extensive enforcement effort that resulted in the takedown of 42 fake cryptocurrency investment platforms. These fraudulent websites lured victims by falsely promising substantial investment returns and using manipulated interfaces to display fabricated profits. Once victims attempted to withdraw their funds, they found their accounts inaccessible, and their investments vanished.

DFPI played a critical role in identifying these scams through its Crypto Scam Tracker, which compiles reports from affected consumers. In 2024 alone, DFPI received over 2,668 consumer complaints, uncovering $4.6 million in losses. The agency also identified seven new scam types, including fake crypto mining operations, fraudulent play-to-earn gaming platforms, and AI-driven investment schemes that falsely promise high-yield returns.

An accompanying glossary provides clarity on common fraud tactics, equipping consumers with knowledge to recognize and avoid scams. DFPI has also added a new Screenshots feature that will visually display screenshots of actual interactions with scammers and the fraudulent platforms used in crypto scams for select consumer complaints. These screenshots are directly provided by consumers and provide visual context to help viewers better understand the structure of crypto scams.

DFPI has updated the Crypto Scam Tracker with several new fraudulent schemes targeting consumers and investors:

• Bitcoin Mining Scam– Scammers solicit investments for fake mining operations, promising shared rewards that never materialize.
• Crypto Gaming Scam– Fraudulent play-to-earn games encourage users to deposit funds, only to drain their wallets using malicious programs.
• Crypto Job Scam– Fraudsters impersonate recruiters, offering fake jobs that require victims to transfer crypto assets or provide sensitive information.
• Crypto Wallet Drainer Attack– Malicious websites trick users into interacting with fraudulent projects that automatically steal crypto assets.
• Crypto Giveaway/Airdrop Scam– Scammers pose as prominent figures or companies, promoting fake giveaways to steal private keys and wallet information.
• Investment Group Scams– Fake investment groups on WhatsApp or Telegram lure victims into fraudulent trades, often led by scammers posing as financial experts.
• AI Investment Scams– Fake investment opportunities that claim to offer high returns through the use of proprietary artificial intelligence systems or automated trading programs. These include:

Attorney General Bonta emphasized the state’s commitment to protecting Californians from financial harm, stating, “As scammers grow increasingly sophisticated, so must our enforcement efforts. We will continue working with our partners at DFPI to dismantle fraudulent crypto schemes and hold bad actors accountable.”

DFPI and the DOJ are urging consumers to report any suspicious cryptocurrency platforms immediately. By leveraging consumer complaints, these agencies can track emerging scams and take swift action to mitigate losses. Consumers who suspect fraudulent activity can submit complaints to DFPI at dfpi.ca.gov or contact the California DOJ.