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SupportedFinanceLast updated: January 15, 2025

Crypto investment scams

Cryptocurrency investment fraud is one of the largest and fastest-growing categories of financial crime globally. The FBI's IC3 documented $9.3 billion in crypto-related fraud losses in 2024 alone, a 66% increase from the prior year, confirming this as a major and well-evidenced public threat.

What we know

Crypto investment fraud encompasses a range of schemes: 'pig butchering' (building fake romantic or social relationships to lure victims into fraudulent trading platforms), fake exchange platforms, pump-and-dump schemes, and celebrity impersonation giveaways. The common thread is exploiting the complexity, novelty, and limited regulatory oversight of cryptocurrency markets to steal funds that are typically irrecoverable.

The FBI's Internet Crime Complaint Center (IC3) 2024 annual report documents $9.3 billion in losses from 149,686 cryptocurrency-related complaints, the highest figures ever recorded by IC3. Investment fraud was the top crypto-related crime category at $5.8 billion in losses. Individuals aged 60 and over were the most heavily impacted demographic, accounting for $2.8 billion in losses. The FBI's Operation Level Up (2024) identified 4,323 active victims of cryptocurrency investment fraud and prevented an estimated $285 million in additional losses, with 76% of identified victims unaware they were being defrauded.

Pig butchering, where fraudsters spend weeks building fake online relationships before introducing victims to fraudulent investment platforms, has become the dominant form of crypto fraud by dollar value. TRM Labs identified at least $10.7 billion in crypto funds sent to fraudulent schemes in 2024. The schemes frequently involve professionally designed fake trading platforms that show fictitious profits until victims attempt to withdraw funds.

Regulatory responses include FBI and Secret Service law enforcement operations, FTC enforcement actions, and warnings from securities regulators in multiple countries. Consumer protection agencies universally advise: never invest based on an unsolicited contact, never trust investment platforms introduced through social media or dating apps, and verify platforms independently with official financial regulators.

Common claims

  • Crypto investment platforms promoted by new online contacts are legitimate.High risk, this is the primary 'pig butchering' fraud pattern documented by the FBI.
  • Celebrity endorsements of crypto investment opportunities are reliable.False, celebrity-endorsed crypto promotions are frequently fake or paid promotions for fraudulent schemes.
  • Crypto fraud losses are relatively minor compared to other fraud.False, $9.3 billion in 2024 makes it the largest single category of internet fraud by dollar value.
  • If profits show on a platform, funds are safe to invest further.False, fraudulent platforms display fictitious profits; withdrawals are blocked or require additional 'fees.'

Evidence hierarchy

01FBI Internet Crime Report 2024 (IC3)Official FBI annual report: $9.3 billion in crypto fraud losses from 149,686 complaints in 2024; 66% increase year-over-year; investment fraud the top category at $5.8 billion.02Operation Level Up, FBIFBI operation identifying 4,323 active crypto investment fraud victims; 76% unaware they were being defrauded; $285 million in estimated prevented losses.03TRM Labs 2025 Crypto Crime ReportIndependent blockchain intelligence firm identifying $10.7 billion in crypto sent to fraudulent schemes in 2024, consistent with FBI IC3 findings.04County Trajectories of Pyramid Scheme VictimizationPeer-reviewed study in Crime, Law, and Social Change analyzing geographic and demographic patterns of investment scheme victimization.05FTC: New Data Show People Have Lost Billions to Social Media ScamsFTC press release documenting multi-billion dollar losses to social media-based investment and impersonation scams.

All sources

Related terms

Pyramid schemesFake online giveawaysAI voice cloning scams