The FBI has announced a major breakthrough in combating cryptocurrency investment fraud through its initiative, Operation Level Up. By identifying and warning potential victims before they transfer funds to fraudulent schemes, the agency has successfully saved over 4,300 individuals from losing an estimated $285 million.
Cryptocurrency investment fraud has become increasingly sophisticated, with scammers using online relationships to build trust before pitching fraudulent opportunities. These scams, often referred to as “pig butchering,” exploit victims by presenting what appear to be legitimate, high-yield investment platforms. Many victims, enticed by the promise of substantial returns, unknowingly invest large sums, only to be denied access to their funds when they attempt to withdraw.
According to the FBI’s Internet Crime Complaint Center (IC3), investment fraud related to cryptocurrency resulted in $3.9 billion in reported losses in 2023. The true financial toll is likely much higher, as many victims either fail to report their losses or significantly underreport them. With an estimated 3,200 complaints filed monthly, the FBI has recognized the urgent need for intervention.
“It’s a growing problem, and it’s a big problem affecting many Americans,” said James Barnacle, deputy assistant director of the FBI’s Criminal Investigative Division.
Direct Intervention and Victim Support
Operation Level Up employs proactive measures to prevent financial devastation. Using advanced investigative techniques, the FBI identifies individuals currently being scammed and contacts them directly. Many victims remain unaware they are being defrauded until they receive the FBI’s warning.
One victim, contacted just before transferring an additional $1 million, immediately ceased his investment after speaking with agents. Another individual had been on the verge of selling her home to fund a $500,000 investment. Another had withdrawn the same amount from a retirement account before the FBI intervened. These timely warnings have prevented life-altering financial losses for thousands.
Beyond financial losses, the psychological toll on victims can be severe. Some victims, deeply affected by the betrayal and financial ruin, require direct support or even suicide intervention. The FBI’s Victim Services Division has played a crucial role in providing assistance to those most impacted by these scams.
“It’s really important for us to intervene and interdict and try to do something,” Barnacle emphasized.
Fighting Back Against Fraud
Scammers employ a range of deceptive tactics, often reaching victims through text messages, social media, investment groups, and dating websites. Their fraudulent platforms appear highly convincing, displaying fabricated profits to encourage further investment. To counter these schemes, Operation Level Up has adopted a multi-pronged approach, including intelligence gathering, disrupting financial networks, and collaborating with private sector partners to shut down illicit platforms.
As part of its prevention efforts, the FBI urges the public to remain vigilant and adopt a “Take A Beat” strategy—pausing before making any financial commitments. The agency also reassures individuals that it will never request personal information, money, or asset transfers. Those who suspect they are victims of fraud are encouraged to report incidents to IC3.gov.
Operation Level Up has proven to be a critical tool in the FBI’s fight against cryptocurrency fraud, not only saving victims from financial devastation but also dismantling the sophisticated networks enabling these crimes.
