The week threw up both large and small losses for crypto crime victims which put exchanges, compliance teams, law enforcement agencies, and regulators on notice: the number of digital asset-based hacks and scams is rapidly increasing along with the amounts being stolen, and the industry must rise to the challenge of keeping the digital asset ecosystem safe.
The FBI’s Internet Crime Complaint Center (IC3) released its Annual Internet Crime report for 2024, showing a 66% increase in crypto-related fraud losses worth $9.3 billion since 2023.
Meanwhile, Nigerians took to social media to vent about being unable to access savings of as much as $16 thousand and as little as $280 from the digital financial platform, CBEX.
Back in the US, New York-based DeFi protocol Loopscale entered bounty rate negotiations with a hacker who stole $5.8 million worth of USDC and SOL in an effort to retrieve the funds.
Find out more about each of these stories below.
FBI reports 66% surge in crypto fraud and seniors over-60 are targeted the most
The FBI’s Internet Crime Complaints Center (IC3) released its 2024 Internet Crime Report on April 23, 2025. It reported losses of over $16 billion from 859,532 complaints, representing a 33% increase from 2023. Cryptocurrency-related fraud alone cost $9.3 billion from 149,686 complaints, a 66% increase from 2023, and the over-60 age group lodged the most complaints and lost the most money.
Cryptocurrency fraud-specific highlights included:
- Cryptocurrency investment scams: $5.8 billion stolen via 41,557 incidents, representing a 47% increase in monetary losses and 29% rise in complaint numbers compared to 2023. The over-60s age group recorded both the most complaints (8,043) and highest losses ($1,6 billion).
- Cryptocurrency ATM frauds: $246.7 million stolen through 10,956 incidents, which is a 31% increase in money lost and a 99% rise in complaints made since 2023. Once more, over-60s recorded the most complaints (2,674) for the largest amount ($107 million).
- Cryptocurrency extortion & sextortion: $33.5 million lost through 54,936 incidents, which is a 9% rise in money stolen and a 59% increase in complaints compared to 2023. Again, over-60s lodged the most complaints (20,445) for the highest amount ($724 million).
- Cryptocurrency crimes by number of complaints: Extortion, with a count of 47,054, generated the highest number of complaints to IC3 in 2024. By state, California logged the highest overall number of complaints (19,508).
- Cryptocurrency crimes by amounts stolen: Investment scams ($5.8 billion) were the most expensive. By state, California again lost the most money overall ($1.4 billion).
The FBI recommended that cryptocurrency participants look out for IC3 circulars and alerts and encouraged victims of fraud to lodge complaints with the agency.
Why this matters
It is concerning that scammers target less crypto-fluent demographic groups such as the over-60 cohort. The story illustrates that, while government and law enforcement agencies have a responsibility to protect their citizens, crypto industry participants of all kinds must also educate themselves to identify scams and frauds.
Learn more about this story at IC3.gov.
Nigerian crypto investors demand answers as CBEX office ransacked over lost savings
Frustrated Nigerian crypto investors have taken to social media to complain that they cannot access funds on the CBEX digital asset platform. As well as videos of weeping victims being posted online, some CBEX customers in the city of Ibadan ransacked the financial platform’s physical office, taking air-conditioners, chairs, and even a solar panel.
Among the customer complaints, one claimed to have lost as much as $16,000 in savings, while another lamented the loss of 450,000 naira (just $280). Investors who confronted CBEX on Telegram were told a hack had caused the freeze over the weekend of April 26/27, 2025, and that it would be resolved soon.
The Nigerian Securities and Exchange Commission (SEC) did not grant CBEX registration due to several failings, even warning the public about unregulated platforms earlier in April. CBEX had enticed Nigerian customers with promises of doubling their investments month-on-month. The scheme is reminiscent of the 2016 MMM financial scam, which offered investors 30% returns in just 30 days, leaving as many as three million Nigerians out of pocket when it collapsed.
Above: Funds deposited to CBEX bridged from TRON to Ethereum blockchain and moved to Centralised Exchanges – Crystal Expert.
Why this matters
The story highlights the risks of unregulated digital platforms, urging investors to exercise caution and regulators to strengthen oversight to protect vulnerable communities from financial loss. Nigeria’s Securities and Exchange Commission (SEC) should continue to educate the public on safe investment approaches to crypto and insist on strong compliance frameworks at crypto exchanges.
Learn more about this story at the BBC.
Crypto hacker who stole $5.8M from Loophole pursues white hat bounty deal
The Solana-based DeFi protocol Loopscale was exploited for $5.8 million on April 26, 2025, consisting of 5.7 million USDC and 1,200 SOL tokens from its yield vaults. The next day, the hacker contacted Loopscale on the Etherscan, offering to return the funds as part of a so-called ‘white hat’ arrangement in exchange for a bounty.
Loopscale agreed in principle but sought to negotiate the bounty rate, with the hacker proposing 20% and promptly returning 5,000 wSOL as a sign of intent. Although negotiations are ongoing for the remaining funds, Loopscale has partially restored its lending functions while keeping vault withdrawals restricted during investigations. The attack targeted only the DeFi protocol’s USDC and SOL vaults, affecting approximately 12% of Loopscale’s total value locked.
Loopscale, which offers capital-efficient lending by directly matching lenders and borrowers, supports products such as structured credit, receivables financing, and undercollateralized lending. It was launched on April 10, just two weeks before the hack. Full platform functionality remains temporarily paused.
Why this matters
The trend towards offering bounties for returned hacked funds should be closely monitored, as it risks creating another avenue of crime for hackers. Additionally, the story highlights the importance of strong security, proactive communication, and clear bounty policies for crypto exchanges, while urging regulators to address evolving DeFi risks and investigators to hone their tracking skills.
Learn more about this story at Cointelegraph.
