Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Americans Lost Staggering $3.94B To Bitcoin, Dogecoin, Shiba Inu And Other Crypto Investment Scams In 2023, FBI Report Reveals

Published 09/03/2024, 05:08
Updated 09/03/2024, 06:10
© Reuters.  Americans Lost Staggering $3.94B To Bitcoin, Dogecoin, Shiba Inu And Other Crypto Investment Scams In 2023, FBI Report Reveals
BTC/USD
-
DOGE/USD
-
SHIB/USD
-

Benzinga - The U.S. witnessed a staggering 53% increase in losses from cryptocurrency investment scams in 2023, reaching a total of $3.94 billion, according to a recent report by the Federal Bureau of Investigation (FBI).

What Happened: The FBI’s Internet Crime Report 2023 revealed that the total losses from scams related to crypto, such as Bitcoin (CRYPTO: BTC), Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), in 2023 rose to $3.94 billion, marking a 53% increase from the previous year’s $2.57 billion, Coindesk reported.

The report also brought to light that the overall investment frauds saw a 38% increase, reaching $4.57 billion from $3.31 billion. The majority of these frauds were cryptocurrency scams, emphasizing the significant role that digital currency has in online crime.

The FBI report noted, “Fraudsters are increasingly using custodial accounts held at financial institutions for cryptocurrency exchanges or third-party payment processors, or having targeted individuals send funds directly to these platforms where funds are quickly dispersed.”

See Also: Bitcoin ‘Still Heavily Undervalued,’ Says Crypto Analyst Despite BTC Breaking Its Previous All-Time-High: ‘We’ll See Way Higher Numbers’

Internet crime was dominated by investment scams in 2023, accounting for over a third of the total $12.5 billion in losses, as per the FBI report.

Why It Matters: The surge in crypto scams in 2023 can be seen in the context of several significant events.

In January, Germany seized over $2 billion in Bitcoin from piracy proceeds, marking the largest seizure of Bitcoins by law enforcement in the country. The operation was carried out in collaboration with the FBI.

Earlier that same month, the U.S. government announced its intention to sell off $132.5 million in Bitcoin that was seized in connection with the Silk Road scam investigation.

Moreover, in September, JP Morgan Chase & Co. decided to halt cryptocurrency-related transactions for its U.K. clients, indicating the growing concern of financial institutions over crypto-related crimes.

Read Next: Bitcoin, Ethereum, Dogecoin Rise As Investors Buy The Dip

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Wikimedia

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.