Cryptocurrency Internet Crime Complaint Center IC3

If you do not have transaction information, please still submit a report to the FBI IC3 and provide as much information as you have. Finally, the abundance of reporting platforms can lead to fragmented information and limited sharing between them. The information provided on this page does not, and is not intended to, constitute legal advice; all information, content, and materials available on this website are for general informational purposes only.

Investors in an ICO are invited to buy a new cryptocurrency from, or get a stake in, a company representing a project. A pump-and-dump scheme occurs when a malicious individual or a group of scammers artificially spreads false information to inflate the price of a low-value digital asset’s price. It is worth noting that individuals found guilty of this crime are usually made to suffer legal implications once caught. A notable example is David Carmona, founder of IconTech, who was sentenced to 10 months in prison after pleading guilty to marketing his Ponzi scheme as a crypto mining and trading company. You can buy cryptocurrency through an exchange, an app, a website, or a cryptocurrency ATM. Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computer equipment to solve highly complicated math puzzles.

• It typically originates from electronic data, which can incriminate offenders or exonerate the innocent.
• A famous example of fraudulent activity by a cryptocurrency exchange involves FTX, founded by Sam Bankman-Fried (also known as SBF).
• For anyone who has faced identity theft, phishing scams, or other cybercrimes, knowing how to report these incidents is essential for recovery and prevention.
• Bear in mind that the more evidence you have, the closer your chances of recovering your lost funds.
• SBF and his staff at FTX defrauded investors, which attracted a conviction case.

Investment Manager Schemes & Initial Coin Offerings

If represented by counsel, a whistleblower may submit a tip anonymously to the SEC. One type of ICO scam, commonly referred to as a “pump and dump” scheme, involves a scammer convincing many people to invest in an ICO to drive up the price of the coin. The scammer then quickly sells off all their own holdings, thereby destroying the value of the coin and leaving the rest of the investors with nothing. A famous example of fraudulent activity by a cryptocurrency exchange involves FTX, founded by Sam Bankman-Fried (also known as SBF). SBF and his staff at FTX defrauded investors, which attracted a conviction case. He was found guilty of wire fraud, among other charges, and sentenced to 25 years in prison.

They aim to gain access to your digital wallet by stealing sensitive login information, such as your private keys. Statista reported that over $15 billion was lost due to cryptocurrency fraud between 2021 and 2024. Some users do not know how to report crypto scams, so some fraudulent occurrences go undocumented. Online crime reporting has simplified the process of reporting incidents, but several challenges can hinder its effectiveness.

Many communities face technology barriers, including limited internet access and low digital literacy, which restrict their ability to utilize online reporting systems. By following these steps, victims can streamline their reporting process, contributing to more efficient investigations. As more individuals utilize online crime reporting, understanding these tools becomes increasingly important. Since 2011, whistleblower tips have enabled the SEC to bring enforcement actions resulting in more than $6 billion in monetary sanctions and the SEC has issued more than $2.2 billion in awards to whistleblowers. The largest SEC whistleblower awards to date are $279 million (May 5, 2023), $114 million (Oct. 22, 2020), and $110 million (Sept. 15, 2021). Please be aware, this list only includes scam websites reported to our Office.

How is cryptocurrency different from U.S. Dollars?

The last five organizations listed above are available in the United States. These regulators have proven helpful, recovering up to 100% of their assets for crypto investors in the case involving the GSB group. Due to the massive number of complaints, we receive each year, IC3 cannot respond directly to every submission, but please know we take each report seriously. With your help, we can and will respond faster, defend cyber networks better, and more effectively protect our nation. The complaint information you submit to this site is encrypted via secure socket layer (SSL) encryption. Complaints filed via this website are analyzed and may be referred to federal, state, local or international law enforcement and partner agencies for possible investigation.

For anyone who has faced identity theft, phishing scams, or other cybercrimes, knowing how to report these incidents is essential for recovery and prevention. This guide will help you navigate the process of online crime reporting effectively. Many victims face challenges in traditional reporting methods, including stigma or fear. Online platforms encourage more victims to report crimes, which increases accountability and helps reduce online crime rates.

Impersonation Scams

In FY 2024, the SEC received approximately 24,980 whistleblower tips and awarded over $225 million to whistleblowers. We provide you with the hottest cryptocurrency news, market analysis, beginner crypto guides, price predictions, and more. However, with the correct information, such as that contained in this guide and obtained from personal research, you can successfully manage your emotions and navigate the crypto scene.

• This modern method effectively captures and documents incidents, making the reporting process more efficient.
• However, once a victim transfers their funds to the “investment manager” through one of these websites, they often find the money can’t be withdrawn or that withdrawals are subject to large fees.
• We provide you with the hottest cryptocurrency news, market analysis, beginner crypto guides, price predictions, and more.
• At first, the scammer will make sure to post what looks like a gain on the investment.
• Even when websites are disabled, scammers sometimes create new websites under different domains.
• Others may impersonate a crypto exchange and claim to be from their support team to trick users into sending their funds to them.

Some Popular Types of Crypto Scams

Many people who fall victim to these methods lose their investments and suffer devastating effects. Between staying connected with family and friends, shopping and banking online, and working remotely, we all depend on security in our interconnected digital world. Criminals from every corner of the globe attack our digital systems on a near constant basis. They strike targets large and small — from corporate networks to personal smart phones. In cyber security, where a single compromise can impact millions of people, there can be no weak links.

NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. In its short history, the SEC Whistleblower Program has had a tremendous impact on securities enforcement and has been replicated by other domestic and foreign regulators. Since 2011, the SEC has received an increasing number of whistleblower tips in nearly study investigates crypto selection every fiscal year.

What is cryptocurrency?

Utilize the resources provided to help foster a safer online community, as your vigilance is crucial in the fight against cybercrime. Investigator processes for obtaining evidence include securing the scene to prevent data tampering. This involves isolating devices and cutting power to avoid overwriting critical information. Once secured, forensic analysis is conducted to extract essential files and metadata linked to the incident. A whistleblower may receive an award of between 10% and 30% of the total monetary sanctions collected.

If you recently lost money to a cryptocurrency scam, you may be tempted to hire a third-party tracing company. However, hiring a tracing company often leads to more fraud and more lost money. In pig butchering scams, victims are approached on dating, social media, or messaging apps and lured how to buy trader joe crypto into making larger and larger investments. The term “pig-butchering” is based on the practice of fattening a hog before slaughter. At first, the scammer will make sure to post what looks like a gain on the investment. The scammer may even allow the victim to withdraw money once or twice to convince them the investment is safe and induce them to invest more additional funds—sometimes hundreds of thousands of dollars.

Being the investor with the largest holding, their action will cause the price to crash once carried out. So, while the scammer will gain a lot of profit, the other investors still holding the asset will record huge losses. Communicate regularly with the authority you filed the report to and be quick to provide any other information they may require. Visit the website of a relevant authority and file a detailed report of the scam. The report should contain all the evidence you have gathered, explaining the incident chronologically.

In turn, this greater volume of reports helps police departments better understand and address crime trends effectively. Chainabuse.com serves as a vital platform for online crime reporting, specifically targeting cryptocurrency scams. As the popularity of digital currencies increases, so does the prevalence of fraud. This site empowers users to report incidents easily, creating a robust database that helps prevent future scams.

Key Terms

Our Office, along with other law enforcement agencies, takes action to disable cryptocurrency scam websites. In some cases, these websites are hosted by companies outside the U.S., which refuse to take the websites down. Even when websites are disabled, scammers sometimes create new websites under different domains. A scammer can create a fake cryptocurrency platform, such as a fake digital wallet or exchange, and trick users into storing their assets there. Others may impersonate a crypto crashing is this time exchange and claim to be from their support team to trick users into sending their funds to them.