As an attempt to protect users from increasing crypto scams and hacking, the Commodity Futures Trading Commission (CFTC) has announced collaboration with federal and private groups. The partnership led by CFTC’s Office of Customer Outreach and Education (OCEO) aims to alert users to the growing number of ‘pig butchering’ scams and other deceptive investment tactics. Regulatory bodies are actively working to strengthen market safeguards against the increasing threat posed by malicious actors in the crypto space.
CFTC Announced Partnership with Federal and Private Organizations
As per a recent press release by the CFTC, the American Bankers Association Foundation and the United States Securities and Exchange Commission (SEC) are the C FTC’s partners in its new initiative. By collaborating with these reputable organizations, the CFTC’s Office of Customer Outreach and Education (OCEO) aims to expand its reach and disseminate vital information about investment fraud to a wider audience.
“Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed. These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”
CFTC’s initiative is part of a broader effort by the United States and global authorities to regulate the market in response to the growing scams and non-compliance. The CFTC and the SEC have taken legal action against numerous crypto firms for violating market rules. Additionally, a report by Chainalysis Inc. revealed that crypto investors and traders lost a staggering $1.6 billion to hackers in the first seven months of 2024, highlighting the urgent need for regulatory collaboration and information sharing to protect market participants.
Roles of Partners
Per the release, the American Bankers Association Foundation in collaboration with Federal and private regulators will circulate an infographic designed to educate investors and users about the tactics employed by pig butchering scammers. The infographic will illustrate the operational practices of these fraudsters, including how they target and manipulate victims.
Additionally, the SEC’s Office for Investor Advocacy and other regulatory agencies will disseminate investor alerts to raise awareness about the dangers of pig butchering scams.
On the other hand, the SEC’s Office for Investor Advocacy and other regulatory agencies will distribute investor alerts on pig butchering.
“It targets individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors. One way all investors can protect themselves is to stop the scam before it starts by not responding to unexpected or unsolicited text messages from unknown senders.”
Infographic Partners
The Commodity Futures Trading Commission has joined forces with a coalition of federal law enforcement and regulatory agencies to combat cryptocurrency scams. These partners include the Federal Bureau of Investigations, Financial Industry Regulatory Authority, Internal Revenue Service, Criminal Investigation, U.S. Department of Homeland Security, U.S. Department of the Treasury, Financial Crimes Enforcement Network, U.S. Secret Service, and U.S. Securities and Exchange Commission. By leveraging the expertise and resources of these organizations, the CFTC aims to enhance its ability to identify, investigate, and prosecute those involved in crypto-related fraud.
Request For Complaint
The CFTC encourages anyone who suspects they or someone they know has fallen victim to cryptocurrency investment fraud to file a detailed report at www.ic3.gov. This website, operated by the FBI’s Internet Crime Complaint Center (IC3), is a central hub for reporting online fraud. The more information you provide, the better, including:
- Names of investment platforms used
- Cryptocurrency wallet addresses involved
- Transaction hashes (unique identifiers for each transaction)
- Bank account information (if applicable)
- Names and contact details of suspected scammers
By providing this information, the informant can help law enforcement track down perpetrators and potentially recover lost funds.
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