The FBI’s initiative to counter crypto investment fraud has helped thousands of victims avoid losing millions of dollars since its launch, according to a Feb. 13 press release.
Operation Level Up is a program that proactively detects people who are being scammed, and intervenes to prevent them from losing their money.
Since its launch, the initiative has saved more than 4,300 potential victims from collectively losing an estimated $285 million, according to the FBI’s Criminal Investigative Division.
James Barnacle (deputy assistant director, division) said:
“It’s a growing problem, and it’s a big problem affecting many Americans.”
Prior to losses, identify victims
Crypto Investment Fraud, also known as “pig butchering,” involves scammers cultivating online relationships — romantic, professional, or platonic — before luring victims into fraudulent investment schemes.
They use fake trading platforms to show inflated profits, which leads victims to invest more money in the scam. The victims are denied withdrawal of their money.
Operation Level Up allows the FBI to track these scams live and contact victims directly before they spend additional money. FBI alerted one targeted investor before he invested another $1 million. Another was on the verge of selling her home to fund a $500,000 loan when she received an intervention call.
Many victims suffer emotional damage in addition to financial loss. FBI says that many victims require suicide or support services.
The FBI warns the public about unsolicited investments, particularly those that involve crypto. Operation Level Up warns victims and gathers information to identify the fraudsters.
The FBI collaborates with both domestic and foreign partners to stop illicit domains, accounts and websites. Alerts are sent to financial institutions, private companies and other entities about fraudulent platforms in order to stop further transactions.
Multi-billion dollar industry
The FBI’s Internet Crime Complaint Center (IC3) reported $3.9 billion in crypto investment fraud losses in 2023. Meanwhile, “pig butchering”In 2024, losses of $3. 6 billion were recorded worldwide.
The true number is believed to be even higher because many victims fail or underestimate their losses. IC3 receives 3,200 crypto-related complaints on average each month.
Scammers use social media sites, professional networks, texts, investment groups, dating platforms and other means to target their victims. They often convince even the most tech-savvy people into investing. The promise of high returns and financial security attracts many victims aged between 30-60.
If you suspect that you are a victim of cryptofraud, then the FBI suggests you contact your bank and make a formal complaint to the appropriate law enforcement agency. The FBI also urged people to talk to their friends and families about potential scams to avoid further victims.
Posted In: Crime, Crypto, Featured, Scams Author 
Assad Jafri
AJ is a dedicated journalist who has spent over a dozen years honing his craft. He began as a Yemeni reporter in 2011 during the Arab Spring. He specializes in financial reporting and now concentrates on cryptocurrency.
Email: @Saajthebard Editor
News Desk
CryptoSlate provides a complete and contextualized resource for cryptocurrency news, data, and insights. Focusing on Bitcoin macro, DeFi, and AI.
@cryptoslate Email Editor Ad 
TRON 2024: Reports by Messari, CryptoQuant and CryptoRank highlight the record growth.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
