FBI Cracks Down on Crypto Scams—Your Portfolio Just Got a Bodyguard

Fraudsters, meet your new adversary. The FBI is ramping up enforcement against crypto scams—just as retail investors start flooding back into the market.

Why now? With Bitcoin hovering near all-time highs and meme coins pumping, bad actors are working overtime. The feds aren’t playing defense anymore—they’re hunting.

Protection mode activated: While regulators usually move at the speed of a stuck blockchain transaction, this crackdown shows rare urgency. Maybe because even Wall Street’s ’experts’ keep falling for these schemes.

Pig Butchering Deception

In the “pig butchering” scheme, fraudsters build trust with potential victims and guide them to fake investment platforms. Initially, victims are convinced they are earning significant profits. However, as the process unfolds, they find themselves unable to withdraw funds, losing all access to the system. According to FBI officials, cases of this type of fraud have been on the rise recently.

The investigation centers around FUNNULL, a computer infrastructure company based in the Philippines. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has accused the company of providing the infrastructure used by scammers.

FUNNULL Scammers

With regulations enacted by the U.S. Department of the Treasury, various sanctions have been imposed on FUNNULL and its executives. It has been reported officially that the majority of related fraud notifications to the FBI were linked to FUNNULL, with estimated victim losses reaching around $200 million.

The U.S. Department of the Treasury: “A significant portion of cryptocurrency frauds reported to the FBI are associated with FUNNULL, with victims losing about $200 million.”

Authorities noted that identified victims in the U.S. have lost an average of $150,000 each. FUNNULL has allegedly supplied data to hundreds of fraudulent websites.

Victims are urged to contact the FBI to share their experiences and losses. The Bureau aims to deepen the investigation and take preventive action against similar fraudulent activities. Experts note that victims mainly trust the fake websites directed by scammers, and their transactions are irreversible.

FBI’s Warning

The FBI and other governmental bodies emphasize the importance of caution in any cryptocurrency investment. It is crucial to investigate brokerage firms or investment opportunities thoroughly before proceeding, and to be wary of promises of rapid and high returns. Strengthening international cooperation is aimed at preventing such issues in the sector, leaving investors with no option but vigilance.

International fraud activities in cryptocurrency markets have led to targeting companies offering infrastructure services. Evaluations suggest that additional measures and regulatory discussions may arise in the future stages of the investigation.

The FBI-led investigation seeks to enhance public safety and awareness against increasing forgery incidents in cryptocurrency investment sectors. In this context, attention is drawn to the risks of protecting personal and financial data in digital asset investments. Potential victims are advised to contact legal authorities in cases of suspected fraud. Implemented measures and official calls can significantly contribute to combating financial fraud.