Crypto Scams in the United States
How cryptocurrency fraud targets US residents — from pig-butchering to Bitcoin ATM scams — and the FTC, IC3, and SEC reporting routes.
Part of: Crypto Scams
Last reviewed: 1 June 2026
The United States has some of the highest crypto fraud losses in the world. The FTC and FBI IC3 consistently report crypto as the leading payment method for fraud losses. The combination of high crypto adoption, widespread Bitcoin ATM infrastructure, and sophisticated pig-butchering operations targeting English-speaking markets creates substantial vulnerability.
This guide covers the major crypto fraud types affecting US residents specifically and the federal and state reporting mechanisms available.
How this scam works on United States
Bitcoin ATMs are a distinctive US-specific fraud vector: scammers posing as Social Security Administration, IRS, utility companies, or local police instruct victims to withdraw cash and feed it into a Bitcoin ATM to 'protect' their account or pay a debt. Once deposited, funds are irreversibly sent to scammer-controlled wallets. The US has more Bitcoin ATMs than any other country, making this tactic particularly prevalent.
Pig-butchering and investment scam operations also deploy US-specific legitimacy markers: fabricated SEC or CFTC registration numbers, fake news articles on lookalike news sites, and endorsements from fabricated 'American financial advisers' with US area codes.
Common red flags
- Government agency (IRS, SSA, FBI) demanding payment via Bitcoin ATM to resolve a debt or investigation
- Investment platform claiming SEC or CFTC registration that cannot be verified at investor.gov
- Utility company threatening immediate service cut-off unless Bitcoin ATM payment is made
- Platform using a fabricated US financial media mention as credibility
- Unsolicited contact from someone in the US who recommends a crypto trading platform
How to protect yourself
- Know that no US government agency (IRS, SSA, FBI, local police) accepts Bitcoin ATM payments
- Verify any investment firm at investor.gov SEC check before depositing
- Contact the IRS directly at 1-800-829-1040 if you receive an alleged IRS call about crypto payment
- Report Bitcoin ATM scams to the FTC so the machine operator can be flagged
- Use CFPB and IC3 to file reports that generate actionable intelligence for law enforcement
How to report it
- File a complaint with the FTC at reportfraud.ftc.gov
- Submit a report to the FBI's Internet Crime Complaint Center at ic3.gov
- Report securities-related crypto fraud to the SEC at sec.gov/tcr
Frequently asked questions
Should I report a crypto scam to the FTC, IC3, or SEC?
File with the FBI's IC3 (Internet Crime Complaint Center) for the general cybercrime and fraud investigation record, and also file with the FTC for consumer fraud tracking — if the scam involved what claimed to be a securities investment (like a fraudulent trading platform), also report to the SEC. Filing with more than one isn't redundant, since they serve different roles and data-sharing purposes.
I deposited cash into a Bitcoin ATM at a scammer's instruction — is there any way to trace or stop it?
Once cash is converted to Bitcoin at an ATM, it moves like any other crypto transaction and is generally very hard to trace or reverse — report the ATM operator, location, and transaction ID to IC3 and to the ATM operator's own fraud reporting line, since some operators keep records that can assist an investigation even if they can't reverse the transaction themselves.
How much of my pig-butchering crypto loss is realistically recoverable in the US?
Recovery is uncertain and depends heavily on factors like how quickly you reported it, whether funds passed through a regulated exchange that can be compelled to freeze them, and ongoing law enforcement action — there's no reliable guarantee either way. Reporting promptly to IC3 gives you the best available chance, since delayed reports significantly reduce any possibility of fund tracing.
Do US law enforcement agencies ever successfully recover crypto stolen in scams?
Yes — the DOJ, FBI, and Secret Service have recovered significant crypto assets in high-profile cases through blockchain analytics and international cooperation. However, recovery for individual victims is uncommon. Reporting to IC3 is important because it contributes to investigations that may eventually result in asset seizures.