FBI’s Secret Crypto Sting: Inside the Operation That Took Down Billion-Dollar Scammers

People are trying to get rich thanks to cryptocurrency, which has caused a financial gold rush. Scammers, however, are there wherever there is money, and they are robbing gullible investors of billions of dollars. To capture these crooks in the act, NBC6 is taking you inside the FBI’s most recent undercover operation as they fight back.

More people are losing everything as cryptocurrency scams get worse.

Cryptocurrency first appeared to be the ideal investment. New investors were attracted by tales of regular individuals generating enormous fortunes. However, not everybody has been as fortunate.

In 2023 alone, Americans lost over $5.6 billion to crypto scams, according to the FBI. That’s a 45% increase from the previous year. The biggest chunk of those losses—$3.96 billion—came from investment fraud, where scammers promised big returns before disappearing with the money.

And it’s not just tech-savvy investors being targeted. Scammers are going after anyone and everyone, from young professionals to retirees, using fake investment platforms, impersonation scams, and social media cons to trick people into handing over their money.

The FBI’s Secret Crypto Sting

Scammers think they’re untouchable. The FBI just proved them wrong.

In an operation straight out of a Hollywood movie, agents created a fake cryptocurrency called NexFundAI. Their goal? To infiltrate crypto scam rings from the inside.

By posing as investors and watching how criminals operated, the FBI uncovered a massive scheme where fraudsters were manipulating crypto prices to trick people into buying before the market crashed. Their work led to multiple arrests and sent a clear message: The FBI is watching.

A 77-Year-Old Woman’s Heartbreaking Story

Losing money is only the first step for many victims. Crypto scams ruin lives and leave victims heartbroken both financially and emotionally.

In one especially sad instance, a 77-year-old Oklahoman woman was involved. She was warned by a fraudster posing as a federal official that her bank account was in jeopardy and that her identity had been stolen. She complied with his orders in a panic and took out $20,000, placing it into a Bitcoin ATM that sent the funds directly to the con artist.

By the time she realized it was all a lie, it was too late.

Unfortunately, her story is all too common. Scammers use fear and manipulation to control their victims, making them believe they have no choice but to hand over their money.

Can Victims Get Their Money Back?

Unlike traditional banking, cryptocurrency transactions are hard to trace and even harder to reverse. But there is hope.

In Wichita, Kansas, authorities recently recovered stolen crypto funds from a fraudulent bank CEO who had been caught up in a scam known as “pig butchering.” This long-term con builds trust over weeks or months before convincing victims to invest everything they have.

Thanks to the FBI’s quick action, some victims got their money back, proving that justice is possible—but only if cases are reported early enough.

How to Protect Yourself from Crypto Scams

The best way to fight back? Don’t fall for the scam in the first place. Here’s what to watch out for:

• Too-good-to-be-true investment offers. If someone guarantees huge returns with “no risk,” it’s a scam.

• Unsolicited messages about crypto investing. Scammers often reach out through social media, dating apps, or phone calls pretending to be financial experts.

• Pressure to act fast. Fraudsters use urgency to stop you from thinking critically. Always take your time before making financial decisions.

• Requests to send money through a Bitcoin ATM or wire transfer. The government or legit companies will never ask you to do this.

The FBI’s Message: We’re Coming for You

The FBI is taking the offense rather than merely responding to cryptocurrency schemes. They are making it more difficult for scammers to escape punishment by developing undercover operations, identifying con artists, and educating the public.

Scammers will not be involved in cryptocurrency, even if it may be the financial industry of the future—at least not if the FBI has anything to say about it.