CFPB Publishes Complaint Bulletin Highlighting Rise in Crypto-Asset Complaints

  • The CFPB published a complaint bulletin analyzing consumer complaints it recently received related to crypto-assets. It highlights predominant consumer issues including fraud, theft, hacks, scams, transaction issues, customer service issues, frozen accounts and platform bankruptcies, and crypto-asset card issues.
  • The CFPB discusses challenges with holding crypto-asset companies accountable when consumers experience issues, questioning whether crypto-asset platforms are effectively identifying and stopping fraudulent transactions, among other things.
  • The CFPB advises consumers to beware of common scams that target crypto-assets such as “pig butchering,” where fraudulent actors gain the victim’s confidence and romantic affection and then leverage this trust to get victims to set up crypto-asset accounts that the scammers then ultimately steal. The CFPB also warns consumers to report suspicious FDIC insurance claims that may fraudulently suggest government endorsement of crypto-assets, and to submit a complaint with the CFPB if they have an issue related to virtual currencies.