FBI initiative saves thousands from crypto scams, recovers $285 million

The Federal Bureau of Investigation (FBI) has announced a new anti-scam initiative, Operation Level Up, stating that it has saved around $285 million for potential victims. The agency disclosed this in a press release on February 13 while acknowledging the prevalence of this type of scam.  

According to the bureau, Operation Level Up is a proactive initiative through which the FBI identifies potential victims of crypto fraud and notifies them before they become victims.

It said:

“Using sophisticated techniques, the FBI identifies victims actively being defrauded and promptly intervenes by calling those victims directly.”

As of January 2025, the agency had notified more than  4,300 potential victims of crypto investment fraud, which has allowed it to protect US residents from losing an estimated $285 million to scammers.

The agency gave several instances where its protectiveness protects victims, noting that one victim was planning to invest an additional $1 million in the scam before it got a call from the FBI. In another case, the victim was about to sell her home so she could invest $500,000.

Meanwhile, FBI Deputy Assistant Director James Barnacle acknowledged the prevalence of crypto-related fraud, noting that it affects millions of Americans. According to him, this is why the agency has stepped in, especially as most of the victims did not even know they were being scammed until the FBI contacted them.

Barnacle said:

“It’s really important for us to intervene and interdict and try to do something.”

He added that FBI intervention has not only saved victims from losing money to fraud, it has also saved lives. In several cases, the victims were so devastated emotionally that the agency had to refer them to its Victim Services Division for support or suicide intervention.

FBI warns about crypto scams, advises users to be cautious

Meanwhile, the FBI noted that the scammers behind crypto frauds are professionals and target all kinds of people. According to the bureau, most victims are between 30 and 60 years old and are generally tech-savvy people looking for financial investment opportunities.

This highlights how criminals prey on victims’ desire for massive financial returns. With fraudulent schemes made to look real, victims are encouraged to invest with platforms that show them making returns. However, these accounts are dummy accounts, and victims cannot withdraw their funds.

Barnacle explained this, saying:

“They are shown terrific investment returns. It looks like on paper, an electronic application, or a website, their money is being spent, and they’re making a lot of money. However, it’s a dummy account, and when victims try to withdraw their money, they are denied.”

Meanwhile, the agency noted that, based on the FBI Internet Crime Complaint Center (IC3), $3.9 billion was lost to crypto investment-related fraud in 2023. It acknowledged that this is likely an underestimate because many people do not report or underestimate their losses.

Nevertheless, the FBI noted that prevention and education are the best ways to stop these losses. It advised people to be more cautious and not ignore warning signs.

To improve its preventative efforts, the FBI plans to continue investigating criminal activities and working with partners locally and internationally to break the criminal networks behind fraudulent schemes.

However, it also advised people to “take a beat” before investing. According to the agency, criminals usually try to “instill a false sense of urgency or isolation,” so it is important to pause, assess, and do all necessary research.

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