California Resident Scammed Out of $2.4 Million in Cryptocurrency Fraud, Police Say

Police are investigating a large-scale cryptocurrency scam that defrauded a Fremont resident of approximately $2.4 million over an 18-month period.

According to investigators, the victim was initially contacted by a caller who falsely claimed he was under criminal investigation. The scammer then connected the victim with two individuals posing as FBI and IRS agents, who told him that his assets were being confiscated.

They instructed the victim to transfer his money into an external cryptocurrency wallet, claiming it was a “safe custody account” managed by the FBI. Over time, the victim moved his entire savings into the fraudulent account. Once the funds were gone, he realized the scam and discovered that all contact numbers had been disconnected.

Fremont police confirmed the case remains under investigation.

Crypto Scams on the Rise

According to the FBI’s 2023 Cryptocurrency Fraud Report, California recorded the nation’s highest crypto-related losses, totaling $1.15 billion. The FBI’s 2024 IC3 Report also ranked cryptocurrency fraud among the top three cybercrimes reported statewide.

How to Protect Yourself

Experts urge caution when investing in digital assets:

Be skeptical of offers promising unusually high returns.
Avoid complex investment schemes using terms like “liquidity pools” or “mining.”
Verify brokers through FINRA’s BrokerCheck.
Only download apps from official stores like Apple’s App Store or Google Play.
Never share your seed phrase or personal information with unverified contacts.
Don’t click suspicious links or install external files ending in .apk or .mobileconfig.
Contact companies only through their official websites.
Never mix online relationships with investment advice.