Cryptographers are getting quite assertive lately—almost like a concerned parent.
Between May 2024 and April 2025, global crypto fraud surged by 456%. Ali Redboard from the blockchain intelligence firm TRM Labs shared this alarming data after appearing before a council last Tuesday.
“These scams are very effective. Technology has become incredibly relatable and familiar for our victims,” Redboard remarked.
“We’ve encountered cases where scammers utilize AI to replicate the voices of loved ones, deceiving the victim into transferring funds under the pretense of an urgent need.”
The issue is particularly severe in densely populated areas like New York, Miami, and Los Angeles, he mentioned.
In June, officials in New York froze $300,000 in stolen cryptocurrency, seizing over 100 fraudulent websites linked to rings based in Vietnam that targeted Russian-speaking communities in Brooklyn with fake Facebook investment ads.
Meta has also removed more than 700 Facebook accounts tied to these scams.
Investigators revealed that the fraudsters employed deepfake bitlicense certificates, guiding victims to encrypted apps, like Telegram, before stealing their funds.
Even those within the crypto industry aren’t immune. Employees of Florida’s Crypto Firm MoonPay found themselves caught up in a scheme where CEO Ivan Soto-Wright and CFO Mouna Ammari Siala allegedly wired $250,000 to a scammer posing as an insider from Trump’s inauguration, according to a recent Justice Department complaint.
This is only scratching the surface.
Globally, fraudsters took over $10.7 billion in 2024 alone, establishing fake relationships to drain accounts through various crypto scams, including romance schemes, bogus trading platforms, and so-called “pig attacks.”
In the U.S., around 150,000 crypto-related fraud cases were reported in 2024, resulting in losses exceeding $3.9 billion, according to the FBI. However, actual figures could be much higher.
“Only about 15% of victims choose to report these crimes,” Redboard noted, emphasizing the feelings of shame, fear, and distrust in law enforcement, particularly among elderly and immigrant populations.
Is there a growing concern over crypto ATMs? Hidden in delis and convenience stores across New York, these machines are reportedly seeing illegal usage rates that are over double that of the broader crypto market, Redboard stated. Victims are often instructed to scan QR codes to deposit cash, only for that money to vanish shortly after converting to crypto.
As the landscape of fraud evolves, there are signs that Washington is beginning to establish some order within this domain.
Notably, the House of Representatives recently wrapped up “Crypto Week,” passing the first comprehensive cryptocurrency legislation that includes regulations on Stablecoins, trading platforms, and digital asset infrastructure.
Despite these advancements, Redboard stresses the importance of basic caution.
“If something seems too good to be true—especially if it entails unsolicited investment advice—it usually is,” he advised.
“Always validate the platform. Verify identities. And if you have doubts, report them to IC3, Chainabuse, or your local authorities.”
