Bitcoin—along with other major cryptocurrencies ethereum, solana and XRP—have crashed back this week (falling along with the stock market in a crash that could get a lot worse).
The bitcoin price has dropped toward $60,000 per bitcoin after touching $70,000 just last week. Other top ten cryptocurrencies ethereum, solana and XRP have also dropped back wiping a combined $300 billion from the crypto market since late July—just after Elon Musk broke his silence on bitcoin.
Now, as traders brace for a Donald Trump bitcoin “game-changer,” the U.S. Federal Bureau of Investigation (FBI) has issued a serious crypto warning over attempts by scammers to steal users’ funds.
“The FBI is warning of scammers impersonating cryptocurrency exchange employees to steal your money,” the domestic intelligence and security service posted to X. “If you have been a victim of this scam report the activity associated with it.”
“If you receive a call or message indicating any kind of account problem or compromise, do not respond, even if it appears official and indicates you must act immediately,” an FBI notice read, alongside a number of other tips to avoid losing crypto to fraudsters.
“Hang up. Call the cryptocurrency exchange’s official phone number to verify if there is a problem. Do not use any phone number the caller provides. Do not go to any websites or click on links the caller sends you. Navigate to the official cryptocurrency exchange website separately.”
The crypto market continues to be plagued by scammers and hackers, with times of bitcoin price and crypto market volatility making it easier for those trying to steal crypto from panicked users.
The amount of bitcoin and crypto stolen worldwide more than doubled in the first six months of 2024 from a year earlier, mostly due to a few massive attacks and the bitcoin and crypto price rebound from 2022, according to a report from blockchain researchers TRM Labs out last month.
“While we have not seen any fundamental changes in the security of the cryptocurrency ecosystem, we have seen a significant increase in the value of various tokens – from bitcoin to ethereum and solana—compared to the same time last year,” Ari Redbord, global head of policy at TRM Labs, told Reuters.
Hackers stole almost $1.4 billion worth of crypto between January and June 2024, compared with $657 million in the same period in 2023, the blockchain sleuths found.
According to United States federal law, cryptocurrency money transmitting services must be registered as MSBs and adhere to AML requirements (31 U.S.C. § 5330; 31 CFR §§ 1010; 1022). The FBI says failure to comply may result in financial disruptions during law enforcement actions, particularly if funds are mixed with illegally obtained money.
The warning clarified that services that knowingly facilitate illegal transactions or violate federal laws are subject to investigation by law enforcement agencies, and that individuals using such services may lose access to their funds during enforcement operations.
As fraud escalates, the banking industry is ramping up its defenses. At a Senate subcommittee hearing in May, industry leaders outlined their battle plan: significant investments in advanced anti-fraud technologies and a new American Bankers Association initiative for real-time inter-bank communication to quickly flag and halt suspicious activities.
Yet banks recognize they’re fighting an uphill battle alone. They’re calling for a unified national strategy, arguing that current federal efforts are disorganized and ineffective against the rising tide of scams.
Stepping into this breach is Brady Finta, a former FBI agent who’s launched the National Elder Fraud Coordination Center. This nonprofit aims to bridge the gap between law enforcement and corporate giants like Walmart, Amazon, and Google.
“There’s very, very smart people and there’s very powerful, wealthy companies that want this to stop,” Finta said. “So, we do have the ability, I think, to make a greater impact and to help out our brothers and sisters in law enforcement that are struggling with this tsunami of fraud.”
