Crypto Investment Scams Become Costliest Fraud in US History as Losses Top $7 Billion

New federal data reveals that Americans lost $7.2 billion to cryptocurrency investment scams in 2025, marking the most costly category of fraud reported to the FBI. According to the agency’s latest Internet Crime Complaint Center (IC3) report, these schemes accounted for nearly half of all cyber-related complaints, fueled by sophisticated fake trading platforms and the emerging use of artificial intelligence.

Background and Context

The findings, published in the IC3’s annual assessment released this week, underscore the escalating scale of digital financial crime. The FBI received more than one million complaints in 2025, a significant increase from the 859,532 complaints recorded in 2024, with total financial losses exceeding $20 billion. Investment fraud represented 49% of all cyber-related complaints, and the majority of those cases involved cryptocurrency. While the reported figures are stark, officials note that the true economic toll is likely far higher, as many victims fail to report incidents to law enforcement.

Key Figures and Entities

Scammers frequently leverage the credibility of high-profile public figures to lure victims. Elon Musk is among the most commonly impersonated figures, a phenomenon highlighted in previous investigations by Gizmodo. Records obtained via a Freedom of Information Act request to the Federal Trade Commission (FTC) detail the experience of a Michigan resident in their 50s who lost $700,000 after being contacted by an individual claiming to represent Musk’s trading interests. The victim was directed to a platform called XT-BestSolutions, where they transferred funds but were subsequently blocked from withdrawing them without paying additional fees.

Legal and Financial Mechanisms

These schemes typically involve the creation of fraudulent websites designed to mimic legitimate investment platforms. Victims are often recruited through text messages, social media, dating apps, and targeted advertisements. Once funds are transferred, usually in the form of Bitcoin or Ether, the platforms display inflated, fake balances—a "mirage" intended to encourage further investment. The 2025 report also highlights a new vector: artificial intelligence. The FBI documented 22,364 complaints involving AI-assisted crimes, totaling $893 million in losses, as perpetrators use deepfakes and generated documents to enhance their schemes.

International Implications and Policy Response

The rise in AI-assisted fraud and complex crypto schemes presents a growing challenge for international regulators and law enforcement. The cross-border nature of these crimes, often involving anonymous digital wallets and offshore entities, complicates asset recovery efforts. The FBI has urged the public to remain vigilant, noting that fraudsters are increasingly posing as law enforcement officers—including agents from the IC3—to further exploit victims seeking help.

Sources

This report is based on the FBI 2025 Internet Crime Report, Federal Trade Commission complaint records obtained via FOIA, and reporting by Gizmodo.