Over $2.8 billion scammed from those over 60! US Senator introduces SAFE Act to counteract

U.S. Senators introduce the “Secure and Fair Enforcement (SAFE) Act,” aiming to coordinate the Treasury Department, law enforcement agencies, regulatory bodies, and the private sector to combat cryptocurrency scams. Democratic Senator Elissa Slotkin and Republican Senator Jerry Moran are pushing for bipartisan legislation. In 2024, the U.S. lost $9.3 billion to crypto-related investment scams, a 66% increase compared to 2023.

FBI Data Reveals: Crypto Scams Hit Record High in 2024

The crypto scam data released by the FBI in 2024 is shocking. Americans lost $9.3 billion due to crypto-related investment scams, a 66% increase from 2023. This rapid growth indicates that despite efforts by the public and private sectors to raise awareness, scammers have found more sophisticated ways to steal investors’ funds.

The age distribution of crypto scam victims is particularly concerning. The group over 60 years old was most affected, losing up to $2.84 billion, accounting for 30.5% of total losses. This age group typically has more savings but has limited understanding of crypto technology, making them prime targets. Scammers often exploit seniors’ unfamiliarity with new tech and their desire for high returns by designing seemingly legitimate investment schemes.

It is important to note that FBI data includes all scams that use crypto as a front, many of which do not involve blockchain or actual crypto technology. These scams simply require victims to pay with crypto, while the promised investment projects may be entirely fictitious. This “crypto as a guise” scam method inflates statistics but also reflects that cryptocurrencies have become the favorite payment tool for scammers due to their anonymity and irreversibility.

Even more worrying is the evolution of scam techniques. Early crypto scams were mostly simple Ponzi schemes or fake exchanges, but now scams have become extremely complex. Scammers create professional-looking websites, forge regulatory licenses, and even hire real customer service teams to increase credibility. They run ads on social media, use celebrity images (often fake endorsements), and create fake user communities to generate FOMO (“fear of missing out”) by showing “others are making money.” This industrialized scam operation makes it increasingly difficult for ordinary investors to distinguish real from fake.

SAFE Bill’s Three Main Mechanisms to Crack Down on Crypto Scammers

(Source: U.S. Senate)

Senator Slotkin states: “The special task force established under the SAFE bill will enable us to leverage all resources to combat digital asset scams.” Senator Moran added: “As cryptocurrency becomes more widespread, this legislation will help address threats and ensure all Americans are better protected from crypto scams.”

The revolutionary aspect of the SAFE bill lies in its coordination mechanism. Currently, efforts to combat crypto scams in the U.S. are scattered across multiple agencies. The FBI investigates financial crimes, the SEC and CFTC oversee regulatory violations, FinCEN tracks money flows, and the Secret Service handles cybercrime investigations. This decentralized enforcement leads to inefficiencies, allowing scammers to exploit gaps between agencies to evade detection.

The SAFE bill will establish a unified special task force led directly by the Attorney General, integrating resources and intelligence from all relevant agencies. This top-level command system means that cracking down on crypto scams will become a priority for federal law enforcement, rather than a marginal task. Crypto lawyer Gabriel Shapiro points out that when top officials like the Attorney General and the Director of the Secret Service are involved in pursuing scammers, enforcement will significantly improve.

More importantly, the SAFE bill will include the private sector in the anti-scam framework. Blockchain evidence companies like TRM Labs have expressed willingness to assist. Their Vice President and Global Policy Head Ari Redbord states: “By bringing industry and law enforcement together, we can effectively reduce criminals’ ability to exploit transformative technologies.” Companies like TRM Labs possess advanced tools to trace on-chain fund flows, identify scam addresses, and track transfer paths in real-time—capabilities that traditional law enforcement often lack.

Core Framework of the SAFE Bill to Fight Scams

Inter-agency Special Task Force: Coordinated enforcement involving the Treasury Department, Department of Justice, FBI, Secret Service, SEC, CFTC

Top-level Command System: Led personally by the Attorney General, Director of the Secret Service, and other senior officials to pursue scammers

Public-Private Collaboration: Integrating blockchain evidence companies like TRM Labs to track scam funds instantly

Enhanced Criminal Penalties: Increasing federal criminal sanctions for crypto scams to raise the legal costs for offenders

Victims’ Compensation Fund: Establishing mechanisms to recover scam assets and return them to victims

Why Crypto Lawyers Say Scammers Will “Flee in Panic”

Gabriel Shapiro’s “flee in panic” comment is not exaggerated rhetoric but an accurate judgment based on the expected shift in enforcement strength. Shapiro states that the SAFE bill could be “very useful” because currently, U.S. securities and commodities regulators are not focusing on cracking down on hackers, scammers, and Ponzi scheme operators.

The current enforcement landscape has clear gaps. The SEC and CFTC mainly focus on regulatory compliance and securities violations, targeting exchanges and project teams rather than directly pursuing scammers. This allows obvious scam projects to persist long-term because regulators consider these projects “outside our jurisdiction.” The FBI, responsible for financial crime investigations, has limited expertise in crypto and often only intervenes months or years after scams occur.

The SAFE bill will fundamentally change this situation. When the Attorney General personally leads a dedicated anti-scam task force, cracking down on crypto scams will become a top priority for federal law enforcement. The involvement of the Secret Service is especially critical; this agency not only protects the President but also has top-tier capabilities in tracking digital financial crimes. The participation of the Director of FinCEN means that the flow of scam funds will be monitored comprehensively, and any attempt to cash out illicit gains will be detected immediately.

Shapiro believes that once scammers realize they are no longer facing dispersed agencies but a unified, top-level task force led by the highest law enforcement officials, many will choose to exit the market. The economics of scams are simple: when risks outweigh rewards, rational criminals will stop offending. The SAFE bill aims to significantly increase the risk costs associated with crypto scams.

Furthermore, collaboration with the private sector will make it impossible for scammers to hide. Blockchain transparency is a double-edged sword; while scammers can exploit anonymity, all transactions are permanently recorded on-chain. Evidence companies like TRM Labs have advanced tools to trace these transactions, identify scam addresses, follow fund flows, and even predict scammers’ next moves. When these capabilities are combined with federal enforcement power, scammers will find themselves increasingly exposed in a transparent system.

However, the success of the SAFE bill still faces challenges. It requires approval from both houses of Congress and the President’s signature, a process that could take months. Even after passage, establishing an effective cross-agency task force will take time. Scammers may accelerate their activities before the bill takes effect or shift to other jurisdictions. Therefore, combating crypto scams requires not only strong legislation but also international cooperation and ongoing technological upgrades.

For investors, the SAFE bill promises a safer investment environment, but vigilance remains essential. Basic principles for identifying scams still apply: promises of excessively high returns, demands for quick decisions, lack of transparent team information—all are typical scam features.