Montana cracks down on crypto fraud as it's a $12.5 billion statewide alarm for fraud

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The US state of Montana sees new digital asset regulations as a surge in crypto fraud, targeting vulnerable residents with fraud schemes and driving a sharp rise in economic losses.

Montana strengthens its fight against digital asset fraud

Montana Securities and Insurance Commissioner James Brown issued a warning this week about a surge in cryptocurrency-related fraud and pledged solid action to protect residents from financial fraud. Brown highlighted the severity of the situation by referring to recent national figures. “In March, the FTC reported losing more than $12.5 billion in scams in 2024, an increase of 25% from 2023.”

He emphasized the importance of aggressive public outreach and regulatory efforts, particularly as older Montanans remain particularly vulnerable to fraud. Montana ranks sixth in the nation for residents over 65, and fraudsters continue to use this demographic through increasingly sophisticated tactics.

Brown threw his support behind pending state laws that put digital asset companies under formal surveillance. He said:

The Montana Legislature is currently considering a bill I support that regulates businesses that provide network tokens and allows the agency to place Montana at the forefront of economic innovation and growth.

The proposed measures seek to empower the Auditors Office with broader authority to oversee entities involved in blockchain-based transactions. Brown said the move would place Montana in a leadership role nationwide, balancing economic opportunities with consumer protection.

At the same time, he warned that the threat would last.

However, despite these promising developments, cryptocurrency and bank transfer fraud remains the biggest source of financial fraud. In response, I instructed my office to take a strong and aggressive attitude towards the con artists, especially those behind the “pig slaughter plan.”

The scam, which comes from the Chinese phrase “Sha Zhu Pan,” invites victims into fake online relationships and social connections before encouraging investment in fraudulent crypto platforms. When trust is built, victims often suffer catastrophic economic losses. In 2024, Brown’s office addressed 15 cases in Montana, including cryptocurrency. He encouraged residents to monitor unsolicited investment opportunities, confidential demands and unrealistic promises of high returns. Brown urged victims to move forward, saying he remains committed to accountability and protection.