As cryptocurrency scams surge across the United States, Montana is stepping up its efforts to combat digital asset fraud. With $12.5 billion lost to scams nationwide in 2024, the state is introducing measures to protect vulnerable residents and curb financial exploitation.

A Warning from Montana’s Securities Commissioner

Montana Commissioner of Securities and Insurance James Brown recently sounded the alarm over the escalating crypto scam crisis. Highlighting a 25% rise in national fraud losses from 2023, Brown underscored the need for immediate action to protect residents.

Older Montanans, who represent a significant portion of the state’s population, are particularly at risk. Scammers exploit this demographic with sophisticated schemes, making public awareness and stronger regulations critical.

New Legislation to Regulate Digital Assets

Montana is considering groundbreaking legislation to place digital asset firms under regulatory oversight. The proposed law, supported by Brown, would give state authorities the power to supervise companies offering blockchain-based services.

“This bill positions Montana as a national leader, balancing economic innovation with consumer protection,” Brown stated. The legislation aims to create a safer environment for blockchain transactions while fostering growth in the digital economy.

The Threat of ‘Pig Butchering’ Scams

Among the most alarming fraud tactics is the “Pig Butchering Scheme”, a scam originating from the Chinese phrase “sha zhu pan.” This involves scammers building fake online relationships to gain victims’ trust, eventually persuading them to invest in fraudulent crypto platforms.

In 2024 alone, Montana addressed 15 such cases, with losses nearing $900,000. However, Brown warns that the true scale is likely much higher due to underreporting. He urged residents to remain vigilant against unsolicited investment offers, secrecy requests, and promises of high returns.

Montana’s Fight Against Fraud

Brown has directed his office to take an aggressive stance against scammers while encouraging victims to come forward. Alongside public outreach, regulatory measures, and legal action, Montana is striving to shield its residents from the financial devastation caused by crypto fraud.

While these steps mark progress, Brown emphasises that the battle against cryptocurrency scams is far from over. By balancing consumer protection with digital innovation, Montana aims to set an example for other states grappling with similar challenges.