Major Cryptocurrency Scams That Were Stopped

Cryptocurrency scams have become increasingly sophisticated, but through collaborative efforts between law enforcement agencies, financial institutions, and cybersecurity experts, several significant fraudulent schemes have been disrupted, safeguarding potential victims from substantial financial losses.

Recent Enforcement Actions

Operation Spincaster

In a coordinated effort spanning six countries, cryptocurrency experts and law enforcement agencies dismantled networks responsible for “approval phishing” scams, which deceived victims into granting unauthorized access to their crypto wallets. This operation, involving 17 crypto exchanges including Binance and NDEX, successfully thwarted scams that had amassed over $1 billion. (therecord.media)

Hydra Market Takedown

In April 2022, American and German law enforcement agencies seized servers and cryptocurrency assets associated with Hydra, a Russian-language dark web marketplace notorious for facilitating illegal drug trafficking and money laundering. At its peak, Hydra had 17 million registered users and 19,000 sellers. The operation’s leader, Stanislav Moiseyev, was sentenced to life in prison by a Russian court in December 2024, marking a significant victory against illicit online marketplaces. (en.wikipedia.org)

Preventative Measures and Victim Support

FBI’s Operation Level Up

To proactively combat cryptocurrency investment fraud, the FBI launched Operation Level Up, an initiative aimed at identifying and notifying active scam victims. As of January 2025, the FBI had alerted over 4,300 potential victims, preventing an estimated $285 million in losses. In one instance, agents intervened just before a victim was about to invest an additional $1 million. (fbi.gov)

Public Awareness Campaigns

Organizations like the Federal Trade Commission (FTC) have intensified efforts to educate consumers about cryptocurrency scams. These campaigns highlight common tactics used by fraudsters, such as impersonating government agencies or offering fake investment opportunities, and provide guidance on how to spot, report, and avoid such scams. (consumer.ftc.gov)

These cases underscore the critical importance of international cooperation, proactive law enforcement strategies, and public education in identifying and stopping cryptocurrency scams, thereby protecting investors and maintaining the integrity of financial markets.