WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Fact Sheet, “Crypto Crimes of the Heart”:
“With Valentine’s Day approaching, many Americans may be searching for love online. Most of these individuals probably don’t expect that online dating could lead them to be victimized by a cryptocurrency scam. Unfortunately, that is often exactly what happens.
“Americans are increasingly losing their life savings to what are called ‘pig butchering’ or ‘romance baiting’ scams. These scams involve online criminals who use fictitious profiles to lure their victims into fake romances and then steal their money by convincing them to invest in crypto. In 2023 alone, these scams accounted for over $4.4 billion in losses.
“By some estimates, these scams have also conned over 40,000 Americans, and our fact sheet highlights some of their stories. They went online to seek romance and instead found their lives ruined. After being duped into investing in illegitimate crypto investments, they lost their life savings. They were unable to retire, unable to pay for their children’s education or medical expenses, and unable to face their families. One individual committed suicide.
“Criminals prefer crypto for these scams because crypto makes the frauds untraceable. Indeed, these scams are just the latest in a long line of crimes that crypto facilitates. Nonetheless, Congress is poised to consider crypto legislation that it has explicitly described as ‘light-touch’ regulation. But before it gives the crypto industry a lax regulatory regime, Congress should consider the consequences for everyday Americans. Americans are already losing their life savings in scams that rely on crypto to be successful. What will happen if Congress adopts a regulatory regime that ignores the dangers crypto poses?”
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