Key Takeaways
- • The FBI's Operation Level Up has notified more than 4,300 potential victims of cryptocurrency investment fraud as of January 2025, saving an estimated $285 million according to the agency.
- • The FBI calls the schemes confidence-enabled cryptocurrency investment fraud, commonly known as "pig butchering," in which scammers build online relationships before pitching fake crypto investments.
- • IC3 recorded an estimated $3.9 billion in cryptocurrency investment fraud losses in 2023, with roughly 3,200 related complaints filed each month, though the FBI says actual losses are likely higher due to underreporting.
- • Victims included individuals who planned to invest $1 million, sell a home for a $500,000 investment, or withdraw $500,000 from retirement accounts before FBI agents intervened by phone.
- • The FBI is pursuing investigations into the financial, infrastructure, and organized crime components of these schemes and shares illicit domains and accounts with the private sector.
Summary
The FBI's Criminal Investigative Division has expanded Operation Level Up, a proactive initiative to identify and directly contact victims of cryptocurrency investment fraud before they lose further funds. As of January 2025, the agency has notified more than 4,300 potential victims, saving them an estimated $285 million, according to the FBI.
The fraud typically begins with an online relationship, whether professional, platonic, or romantic, that gradually builds trust before the scammer presents a purported cryptocurrency investment offering large returns. Law enforcement, media, and criminals use different terms for these schemes, including the derogatory "pig butchering." The FBI classifies them as confidence-enabled cryptocurrency investment fraud. James Barnacle, deputy assistant director of the FBI's Criminal Investigative Division, described the problem as a growing one affecting many Americans.
According to the FBI's Internet Crime Complaint Center (IC3), victims reported an estimated $3.9 billion in cryptocurrency investment fraud losses in 2023, and approximately 3,200 such complaints are filed monthly. The agency states the true figure is likely much higher because many victims do not report or underreport their losses. Most targeted victims are between 30 and 60 years old, tech-savvy, and actively seeking investment opportunities. Scammers use fake investment platforms that display false balances and early "profits," and may permit small withdrawals to encourage larger deposits. When victims attempt full withdrawals, they are denied, Barnacle said.
Most victims contacted by the FBI do not realize they are being defrauded, and some have been so affected that they were referred to the FBI Victim Services Division for support, including suicide intervention. The FBI notes that victims may be reluctant to trust unsolicited warnings, so agents offer ways to verify their identity. The agency states it will never ask for personally identifying information, money, or a transfer of assets to a new account. The outreach also generates leads on perpetrators, and the FBI continues working with domestic and international partners to disrupt the criminal organizations involved.
The FBI advises the public to "Take A Beat" by pausing, conducting independent research before investing, and treating unsolicited investment pitches from online contacts as likely fraud. Anyone who suspects they are a victim should contact their bank immediately and file a complaint at ic3.gov.
The fraud typically begins with an online relationship, whether professional, platonic, or romantic, that gradually builds trust before the scammer presents a purported cryptocurrency investment offering large returns. Law enforcement, media, and criminals use different terms for these schemes, including the derogatory "pig butchering." The FBI classifies them as confidence-enabled cryptocurrency investment fraud. James Barnacle, deputy assistant director of the FBI's Criminal Investigative Division, described the problem as a growing one affecting many Americans.
According to the FBI's Internet Crime Complaint Center (IC3), victims reported an estimated $3.9 billion in cryptocurrency investment fraud losses in 2023, and approximately 3,200 such complaints are filed monthly. The agency states the true figure is likely much higher because many victims do not report or underreport their losses. Most targeted victims are between 30 and 60 years old, tech-savvy, and actively seeking investment opportunities. Scammers use fake investment platforms that display false balances and early "profits," and may permit small withdrawals to encourage larger deposits. When victims attempt full withdrawals, they are denied, Barnacle said.
Most victims contacted by the FBI do not realize they are being defrauded, and some have been so affected that they were referred to the FBI Victim Services Division for support, including suicide intervention. The FBI notes that victims may be reluctant to trust unsolicited warnings, so agents offer ways to verify their identity. The agency states it will never ask for personally identifying information, money, or a transfer of assets to a new account. The outreach also generates leads on perpetrators, and the FBI continues working with domestic and international partners to disrupt the criminal organizations involved.
The FBI advises the public to "Take A Beat" by pausing, conducting independent research before investing, and treating unsolicited investment pitches from online contacts as likely fraud. Anyone who suspects they are a victim should contact their bank immediately and file a complaint at ic3.gov.
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