California authorities have cracked down on crypto fraud, shutting down 26 fraudulent crypto websites and uncovering over $4.6 million in consumer losses. The state's Department of Financial Protection and Innovation identified seven new types of scams through its Crypto Scam Tracker, which processed over 2,600 complaints. The scams included fake Bitcoin mining, crypto job scams, and crypto gaming frauds. The Department of Justice also took down 42 scam websites operated by international fraudsters, revealing $6.5 million in losses. One particular scam called "pig-butchering" has seen a surge in activity, where fraudsters manipulate victims into investing in non-existent crypto projects. Chainalysis, a blockchain analysis firm, reported a 40% increase in pig-butchering scam revenue compared to 2023, contributing to the $9.9 billion in total scam-related crypto losses tracked in 2024. The report also highlighted the use of generative AI to amplify and scale up crypto fraud and make it harder to detect.



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