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The Federal Bureau of Investigation’s (FBI) 2023 Internet Crime Report sheds light on an alarming surge in cryptocurrency-related investment fraud. 
According to the <a href="https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf" target="_blank" rel="noreferrer noopener">report</a>, crypto scams accounted for 86% of all investment fraud losses in the U.S., amounting to $3.94 billion. 
That’s a 53% increase from 2022, when multiple crypto scams plagued the sector, including the $32 billion <a href="https://crypto.news/ftx-assets-vanish-over-bankruptcy-turmoil/" data-type="link" data-id="https://crypto.news/ftx-assets-vanish-over-bankruptcy-turmoil/">collapse</a> of FTX and the $4.7-billion <a href="https://crypto.news/celsius-investors-lost-millions-of-dollars-records-show/" data-type="link" data-id="https://crypto.news/celsius-investors-lost-millions-of-dollars-records-show/">bankruptcy</a> of Celsius (the founders of both of those companies faced fraud charges). 
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 The <a href="https://twitter.com/hashtag/FBI?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#FBI</a> has released the 2023 Internet Crime Report, which is packed with data and insights into cybercriminal trends. See the latest figures for ransomware incidents and cyber-enabled frauds such as business-email compromise and tech support scams: <a href="https://t.co/PIXjB0DjXn" target="_blank">https://t.co/PIXjB0DjXn</a> <a href="https://t.co/AfxvsCScGZ" target="_blank">pic.twitter.com/AfxvsCScGZ</a>— FBI (@FBI) <a href="https://twitter.com/FBI/status/1765844973151306201?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">March 7, 2024</a>
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This surge in crypto-related fraudulence aligns with a broader trend of escalating online financial deceit. The Internet Crime Complaint Center (IC3) documented a staggering total of over $12.5 billion in online fraud losses.&nbsp; 
The report detailed how investment scams — propelled primarily by crypto <a href="https://crypto.news/russian-central-bank-nearly-half-of-all-financial-scams-in-russia-last-year-involved-crypto/" target="_blank" rel="noreferrer noopener">scams</a> — jumped 38% to reach $4.57 billion. It also revealed that cybercriminals are increasingly leveraging the anonymity and rapid transaction capabilities of digital currencies, including Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), as well as meme coins like Dogecoin (<a href="https://crypto.news/price/dogecoin/" target="_blank" rel="noreferrer noopener">DOGE</a>), and Shiba Inu (<a href="https://crypto.news/price/shiba-inu/" target="_blank" rel="noreferrer noopener">SHIB</a>). 
Executing schemes is becoming easier, the FBI says. Scams can range from business email attacks ($2.9 billion in losses) to more intricate impersonations and phishing operations. 
What makes the 2023 outbreak of crypto <a href="https://crypto.news/the-top-10-high-profile-crypto-fraud-cases/" target="_blank" rel="noreferrer noopener">fraud</a> particularly noteworthy are the precise lengths to which perpetrators have gone. 
<h3 class="wp-block-heading" id="fbi-fraudsters-are-evolving">FBI: Fraudsters are evolving&nbsp;</h3> 
According to the FBI, culprits utilize custodial accounts at major financial institutions, crypto exchanges, and third-party payment processors as conduits for their scams. 
This strategy not only facilitates the swift dispersal of illicitly obtained funds but also complicates the tracing and recovery processes. 
 You might also like: <a href="https://crypto.news/ransomware-gang-blackcat-exit-scams-affiliates-with-millions-in-bitcoin-after-attacking-medical-it-firm/"> Ransomware gang BlackCat exit scams affiliates with millions in Bitcoin after attacking medical IT firm </a> 
The exponential growth of these crimes can also be seen through a global lens, with the FBI’s findings resonating beyond the U.S. borders, for instance, Germany’s significant seizure of over $2 billion in Bitcoin from piracy proceeds. 
The assets seized by the German government stemmed from the operations of a website identified in previous investigations as “Movie2k.” This site was known for streaming pirated films and has been one of Germany’s most frequented online destinations for such content since its inception in 2008.&nbsp; 
By distributing more than 880,000 pirated movies, its operators profited from advertising and subscription fees. Identified suspects include a Berlin-based programmer and real estate tycoon, who have since been arrested on charges of commercial money laundering. 
Others who have been arrested include two people from Germany and Poland believed to have accrued Bitcoin through the site’s earnings until its shutdown in 2013.&nbsp; 
One of the suspects has reportedly taken a step toward restitution by voluntarily transferring the disputed Bitcoin to the Federal Criminal Police Office’s (BKA) wallet, following which the fate of these funds now awaits a judicial decision. 
Earlier that same month, U.S. authorities announced their plan to <a href="https://crypto.news/u-s-government-to-sell-over-131m-in-bitcoin-seized-from-silk-road/" target="_blank" rel="noreferrer noopener">sell</a> off Bitcoin worth around $132.5 million, confiscated during the investigation of the notorious Silk Road marketplace.&nbsp; 
The District Court in Maryland unveiled plans to liquidate the seized digital currency, a sum that was amassed from two major busts involving <a href="https://www.baltimoresun.com/2024/01/08/reisterstown-father-and-son-sentenced-following-conviction-for-laundering-millions-over-the-dark-web/" target="_blank" rel="noreferrer noopener">Ryan Farace</a> and Sean Bridges.&nbsp; 
Specifically, Farace’s stash — amounting to 2874.904256 Bitcoin (valued at $129,251,164.54) — was secured in Memphis, Tennessee, on Feb. 10, 2021. Another batch, comprising 58.742155166 Bitcoin (worth about $3,304,833.65), was taken from Farace in Arlington, Virginia, on May 11, 2021.&nbsp; 
In parallel, financial institutions are taking definitive steps to mitigate the risks associated with cryptocurrency transactions. Notably, JPMorgan Chase &amp; Co.’s decision to halt crypto transactions for its U.K. clients underscores the growing apprehension surrounding these digital assets.&nbsp; 
This proactive stance was aimed at safeguarding consumers from the escalating threats posed by crypto-related fraud, which has seen a dramatic uptick in consumer losses, soaring past 40% in the U.K. alone. 
 Read more: <a href="https://crypto.news/pig-butchering-crypto-scams-made-over-75b-university-of-texas-professor-reveals/"> Pig-butchering crypto scams made over $75b, University of Texas professor reveals </a>

Crypto crime wave: FBI reports 53% rise in 2023, losses near $4b

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