AG Bonta Announces Action on Cryptocurrency, Sextortion Fraud

November 12, 2026

California Attorney General Rob Bonta issued a public warning about the dramatic increase in cryptocurrency fraud and online sextortion schemes that resulted in over $20 billion in losses nationwide during 2025. The scams have evolved to incorporate artificial intelligence and deepfakes, making them harder to detect, while younger social media users on platforms like TikTok and Instagram have become primary targets alongside traditional older victims. Common schemes include "rug-pull" cryptocurrency scams where fraudsters artificially inflate asset values before selling off their holdings, sextortion attempts using explicit images as leverage, and recovery fraud targeting previous scam victims.

Who is affected

Californians and Americans generally, who lost $20.9 billion to internet scams
Gen Z consumers targeted on Twitch, TikTok, and Instagram
Older Californians who remain traditional targets
Cryptocurrency investors hit by rug-pull scams
Sextortion victims coerced into sharing explicit images
People previously scammed who are then targeted by recovery fraud schemes
Victims who collectively lost at least $8.3 million through 100+ fraudulent websites

What action is being taken

Attorney General Rob Bonta is warning residents and urging them to recognize warning signs
Bonta's office is shutting down fraudulent websites (has closed more than 100 over the past two years)
Officials are advising victims to report scams to the California Department of Justice at oag.ca.gov/report

Why it matters

This matters because scammers are increasingly using sophisticated technology like artificial intelligence, deepfakes, and malicious smart contracts that make fraud easier to perpetrate and more difficult to detect and prevent. The shift toward targeting younger people on social media platforms represents an expansion of traditional scam operations, creating new vulnerable populations. The massive financial losses—$20.9 billion nationwide with $11.4 billion from cryptocurrency scams alone—demonstrate the scale of harm these schemes cause to individuals and families across economic sectors.

What's next

Law enforcement can petition courts under Senate Bill 1208 to return seized cryptocurrency to victims, including cases where perpetrators are outside U.S. jurisdiction
Victims can report scams to the California Department of Justice at oag.ca.gov/report

Read full article from source: The San Diego Voice & Viewpoint