California Attorney General Rob Bonta has announced the shutdown of 42 fraudulent cryptocurrency websites in 2024, as part of efforts to combat scams that have defrauded victims of at least $6.5 million. The California Department of Justice (DOJ) is taking action against these scams, often referred to as "pig-butchering" scams, which are typically conducted by international scammers who are difficult to prosecute.
"As scammers grow increasingly sophisticated and calculated, so must our enforcement," stated Attorney General Bonta. He acknowledged the hard work of his team and expressed gratitude towards state partners at the Department of Financial Protection and Innovation for their collaboration. Bonta urged Californians to be cautious with their finances and avoid sending money to strangers.
DFPI Commissioner KC Mohseni highlighted the importance of the DFPI’s Crypto Scam Tracker in empowering consumers to remain vigilant. "It is a vital part of our enforcement strategy and role as a financial regulator, educator, and enforcement agency," said Mohseni. He advised Californians to verify website domains and stay informed about crypto recovery scam sites.
In pig-butchering schemes, victims receive random messages on social media or texts from scammers who build trust before directing them to fake investment websites. These sites falsely show rapid increases in investment value, leading victims to invest more money before realizing they cannot withdraw funds.
The DOJ has identified several red flags for spotting illegitimate websites: promises of impossible returns, lack of contact information, use of stolen images or content, fictitious addresses, offers of prizes or bonuses, inconsistent contact details, outdated content on websites, poor grammar or translation errors, and absence from industry listings like CoinMarketCap.com.
These guidelines were developed by the DOJ's Cybercrime Section in partnership with the Department of Financial Protection and Innovation as part of their mission to combat internet crime.
Victims are encouraged to cease contact with scammers immediately and report incidents to local law enforcement agencies. Reports can also be made through the California Department of Justice's website at oag.ca.gov/report or via the Department of Financial Protection and Innovation's complaint submission page at dfpi.ca.gov/submit-a-complaint/. Additionally, reports can be filed with the FBI’s Internet Crime Complaint Center (IC3).