Crypto Scams in the USA in 2025: A Rising Threat

In 2025, the United States witnessed a significant surge in cryptocurrency-related scams, marking a pivotal year in the ongoing battle against digital fraud. The rapid evolution of technology, particularly advancements in artificial intelligence (AI), played a central role in the proliferation and sophistication of these fraudulent activities. This article delves into the various facets of crypto scams that emerged in 2025, highlighting notable cases, the impact of AI, and the responses from regulatory bodies and the broader community.

The Rise of AI-Driven Crypto Scams

The integration of AI into the realm of cryptocurrency scams marked a transformative shift in 2025. Generative AI technologies enabled scammers to create highly convincing fake content, including realistic videos, images, and communications, making it increasingly challenging for individuals to distinguish between legitimate and fraudulent activities. According to blockchain analytics firm Chainalysis, crypto scam revenues reached approximately $9.9 billion in 2024, with projections indicating a rise to over $12 billion as more fraudulent addresses were identified. The firm attributed this increase to the scalability and affordability that AI provided to bad actors, facilitating the creation of synthetic identities and the impersonation of real users.

One particularly alarming development was the use of AI-generated deepfakes to impersonate prominent figures such as former U.S. President Donald Trump and entrepreneur Elon Musk. These deepfakes were employed in fake giveaway schemes, deceiving individuals into transferring funds to scammers. Social media platforms became rife with AI bots generating persuasive posts and engaging with users in real-time, creating a false sense of legitimacy and urgency. In early 2024, an AI-driven phishing attack targeted users of a major cryptocurrency exchange, resulting in nearly $65 million in losses.

Notable Crypto Scam Cases in 2025

Several high-profile cases in 2025 underscored the diverse methods employed by crypto scammers:

Danbury Kidnapping Linked to Crypto Theft: In August 2024, a Danbury couple was kidnapped in a scheme to extort money from their son following a $230 million cryptocurrency heist. James Schwab, a 22-year-old from Georgia, was identified as a key planner and facilitator of the crime, providing logistical support and funding. The kidnapping was orchestrated after a conflict between Schwab and the victims’ son at a Miami nightclub. This case highlighted the extreme lengths to which individuals would go to recover stolen digital assets.
Misappropriation of Netflix Series Budget: Director Carl Erik Rinsch was arrested in Los Angeles on charges of fraud after diverting $17 million from the budget of a Netflix series into personal investments, including cryptocurrency. The project, initially titled “White Horse” and later renamed “Conquest,” received $70 million in 2018. However, Rinsch only filmed one episode and used the funds for personal expenses such as luxury cars and divorce fees. He faced charges including wire fraud and money laundering, with a potential sentence of up to 90 years in prison.
Market Manipulation by Crypto Firm Founder: Aleksei Andriunin, founder and CEO of cryptocurrency financial services firm Gotbit, pleaded guilty to charges of market manipulation and wire fraud in a U.S. federal court. Andriunin and his company engaged in “wash trading” to inflate the trading volumes of digital tokens for several clients, aiding them in getting their tokens listed on larger exchanges. He faced up to two years in prison, with sentencing scheduled for June 16.
Tornado Cash Developer’s Legal Battle: Roman Storm, a software developer and co-founder of the crypto mixer Tornado Cash, was arrested for allegedly facilitating money laundering. The Justice Department claimed Tornado Cash was used by criminals, including North Korea’s Lazarus Group, to launder over $1 billion in illicit assets. Despite asserting that Tornado Cash was designed for financial privacy, Storm faced charges with a potential 45-year prison sentence. His trial was set for July 2025.

The Role of Social Media and AI in Scams

Social media platforms became fertile ground for crypto scams in 2025. Scammers increasingly utilized social media apps and messaging platforms to target investors, often employing tactics designed to play on emotions and create a sense of urgency. According to the North American Securities Administrators Association (NASAA), approximately 31.7% of likely scams originated on platforms such as Facebook and X (formerly Twitter), while 31.3% were linked to text- and voice-based services like Telegram and WhatsApp.

The weaponization of AI further amplified these scams. State regulators anticipated a rise in AI-generated content used to deceive investors, including deepfake videos and graphics that established false credibility. Nearly 39% of regulators expected bad actors to create AI-driven materials, while 22.2% predicted an increase in deepfake scams involving impersonated celebrities or trusted individuals. This trend underscored the need for heightened vigilance and critical assessment of online content.

Regulatory Responses and Challenges

The surge in crypto scams prompted calls for comprehensive regulatory frameworks to protect investors and maintain market integrity. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam highlighted the severe risks inherent in the $3 trillion cryptocurrency market due to the lack of comprehensive regulation. He emphasized the urgency of establishing a regulatory framework to prevent potential calamities akin to the FTX disaster. With President-elect Donald Trump expected to enhance regulatory measures over crypto, the process was anticipated to be lengthy, posing ongoing risks in the interim.

The Securities and Exchange Commission (SEC) also faced criticism for its handling of crypto regulations. After dropping its appeal against Ripple Labs, there were calls for the crypto industry to engage in self-regulation to fill the gaps left by government agencies. Meanwhile, the Federal Trade Commission (FTC) increased its efforts to educate the public about potential scams, launching initiatives aimed at raising awareness among retail investors.

How to Protect Yourself from Crypto Scams

As crypto scams become more sophisticated, individuals must take proactive measures to safeguard their assets. Here are some key steps to mitigate risks:

Verify Sources: Always double-check the legitimacy of websites, social media accounts, and emails before engaging in any financial transactions.
Beware of Too-Good-To-Be-True Offers: If an investment opportunity promises guaranteed returns or exceptionally high profits, it is likely a scam.
Enable Security Features: Use two-factor authentication (2FA) and strong passwords for crypto exchanges and wallets.
Educate Yourself: Stay informed about common scam tactics and emerging threats in the crypto space.
Report Suspicious Activities: If you suspect a scam, report it to authorities such as the SEC, FTC, or the FBI’s Internet Crime Complaint Center (IC3).

Conclusion

The year 2025 underscored the evolving nature of cryptocurrency scams in the USA, with AI playing a crucial role in enabling fraudsters. From high-profile cases to regulatory challenges, the crypto landscape remains a complex battleground for investors, regulators, and scammers. As the industry continues to grow, staying vigilant and informed is the best defense against falling victim to these ever-evolving schemes.

The battle against crypto scams is far from over, but through enhanced awareness, improved regulations, and technological advancements, individuals and authorities can work together to mitigate risks and foster a safer digital financial ecosystem.