The FBI’s initiative to counter crypto investment fraud has successfully saved thousands of victims from losing millions of dollars since its launch, according to a February 13 press release.
Dubbed Operation Level Up, the program proactively identifies individuals being targeted by scams and intervenes before they suffer financial losses.
Since its inception, the initiative has prevented more than 4,300 potential victims from losing an estimated $285 million, as reported by the FBI’s Criminal Investigative Division.
According to James Barnacle, deputy assistant director of the division:
“It’s a growing problem, and it’s a big problem affecting many Americans.”
Identifying Victims Before They Lose Money
Crypto investment fraud, commonly referred to as “pig butchering,” involves scammers establishing online relationships—romantic, professional, or platonic—before luring victims into fraudulent investment schemes.
Scammers use fake trading platforms that display inflated returns, encouraging victims to invest larger sums of money. When victims attempt to withdraw their funds, they are denied access.
Under Operation Level Up, the FBI tracks these scams in real-time and directly contacts victims before they commit additional funds.
For example:
- One targeted investor was about to invest another $1 million but was warned in time.
- Another victim nearly sold her home for a $500,000 investment before an FBI intervention call stopped her.
Beyond financial losses, victims often suffer emotional distress, requiring support services and, in extreme cases, suicide intervention. The FBI emphasized the psychological toll of these scams and urged individuals to remain vigilant.
FBI’s Efforts to Dismantle Crypto Fraud Networks
The FBI is actively working to track and dismantle the criminal networks behind crypto scams by:
- Collaborating with domestic and international partners to shut down fraudulent domains and accounts.
- Providing alerts to financial institutions and private companies about scam platforms to prevent further transactions.
- Educating the public about recognizing and avoiding crypto scams.
The Multi-Billion Dollar Crypto Fraud Industry
According to the FBI’s Internet Crime Complaint Center (IC3):
- $3.9 billion in crypto investment fraud losses were reported in 2023.
- $3.6 billion in losses from “pig butchering” scams occurred globally in 2024.
Officials believe actual losses could be much higher, as many victims do not report or underreport their losses. On average, IC3 receives 3,200 crypto scam complaints per month.
Scammers target victims through:
- Social media and professional networking sites
- Text messages and investment groups
- Dating platforms and cold calls
Even tech-savvy individuals are drawn into these scams, often lured by promises of financial security and high returns. The most affected victims typically range between 30 and 60 years old.
How to Protect Yourself from Crypto Scams
The FBI advises individuals who suspect they have been targeted by crypto fraud to:
- Contact their bank immediately to stop further transactions.
- File a complaint with law enforcement agencies, including IC3.
- Discuss potential scams with friends and family to prevent further victimization.
Through Operation Level Up, the FBI has significantly curbed crypto-related fraud, saving victims from massive financial losses while taking steps to dismantle fraudulent networks. As the crypto scam landscape evolves, the agency continues to emphasize awareness, early intervention, and collaboration to protect consumers and ensure financial security.
