CALIFORNIA – Fremont police are investigating a fraud case in which a resident was scammed out of approximately $2.4 million over an 18-month period through a cryptocurrency scheme.

According to police, the victim was first contacted by a caller claiming he was the subject of a criminal investigation.

The caller then connected the victim with two other individuals posing as agents from the FBI and IRS.

The scammers told the victim that his financial assets were being confiscated and instructed him to transfer his funds into an external cryptocurrency wallet, allegedly to secure them in a “safe custody account” managed by the FBI.

Over time, the victim moved his entire balance into the fraudulent account. When his funds were depleted, he discovered there was no investigation and that the phone numbers used by the scammers had been disconnected.

Police say the case remains under investigation.

Crypto fraud among top cybercrimes in California

The FBI’s 2023 Cryptocurrency Fraud Report reveals that California experienced the highest cryptocurrency-related losses in the nation, totaling $1.15 billion. Also, in 2024 the FBI’s IC3 report listed cryptocurrency fraud among the top three cybercrimes reported in California. 

To reduce risk, experts advise:

Be skeptical of promises of unusually high returns — if it sounds too good to be true, it probably is.

• Avoid investment offers using complex terms like pools, futures, mining, or liquidity schemes.
  
• Never share personal information with unverified individuals; verify brokers through FINRA’s BrokerCheck.
  
• Download apps only from legitimate stores such as the Apple App Store or Google Play.
  
• Don’t click on suspicious links or grant excessive app permissions.
  
• Avoid linking investment apps to outside platforms that aren’t verified.
  
• Never share your seed phrase — it gives full access to your crypto wallet.
  
• Contact companies through their official websites, not chat functions on external pages.
  
• Don’t install external files ending in .apk (Android) or .mobileconfig (iOS); these can infect your device.
  
• Never combine online relationships with investment advice.

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