Colorado Reports $81 Million in Crypto Fraud Losses as Jury Duty Scam Emerges

TLDR

• Colorado resident lost $6,000 in Bitcoin through fake jury duty scam
• Similar incidents reported across Colorado with scammers impersonating law enforcement
• EigenLayer Twitter account compromised for fake airdrop scam
• Over 1,300 crypto fraud cases documented in Colorado during 2023, totaling $81M in losses
• Australian regulator ASIC removed 600+ crypto scams in past year

A recent string of cryptocurrency scams has swept through Colorado, with the latest victim losing over $6,000 in Bitcoin after falling prey to fraudsters posing as law enforcement officials.

The Keystone resident was convinced they had missed jury duty and needed to pay a fine through Bitcoin to avoid arrest, according to reports from the Summit County Sheriff’s Office.

The scammers nearly succeeded in extracting an additional $4,000 before local deputies intervened to stop the transfer.

During the interaction, the perpetrators managed to obtain personal information from the victim, adding another layer of concern to the incident.

In Denver, a similar case emerged where a woman lost approximately $5,000 in Bitcoin after scammers, pretending to be Denver Police officers, used the same jury duty pretext.

The victim, believing she had overlooked a jury summons, followed instructions to send payment through a Bitcoin ATM to clear what she thought was a legitimate warrant.

Law enforcement officials have emphasized that no deputy would ever request payment in cryptocurrency, gift cards, or wire transfers to clear arrest warrants.

Despite this warning, scammers continue to successfully target residents using sophisticated phone spoofing techniques that make their calls appear to come from legitimate law enforcement agencies.

The scope of crypto fraud in Colorado has reached alarming levels. State investigators documented more than 1,300 cases in 2023, with total losses reaching $81 million. These numbers have pushed Colorado to rank 15th nationally for crypto-related crimes.

Bank staff in Keystone managed to prevent another potential victim from losing $8,000 in September when they identified suspicious behavior related to similar fraudulent calls. This intervention highlights the growing awareness among financial institutions about these schemes.

The criminals’ tactics extend beyond just jury duty scams. In a separate incident, the Twitter account of EigenLayer, an Ethereum restaking protocol, was compromised.

Hackers posted fake airdrop messages directing users to phishing links disguised as the protocol’s official website.

Law enforcement officials note that cryptocurrency transactions are particularly appealing to fraudsters due to their irreversible nature and the difficulty in tracing funds once transferred.

The FBI’s Denver office has issued warnings about token impersonation scams, including a case where $3.2 million was allegedly stolen through a fraudulent token called INDXcoin.

Researchers at Stanford University have been working on developing reversible transactions through Ethereum as a potential solution to combat these types of frauds. However, this technology is still in development and not yet widely available.

The Summit County Sheriff’s Office continues to warn residents about the aggressive and persuasive tactics used by these scammers.

They emphasize that legitimate law enforcement will never request cryptocurrency payments for any official purposes.

Private sector initiatives have emerged to assist victims of crypto scams, though recovery of stolen funds remains challenging.

Law enforcement agencies recommend immediate reporting of suspicious calls and verification of any supposed legal obligations through official channels.

The most recent incident in Keystone has prompted local authorities to increase their public awareness efforts about crypto scams.

They advise residents to be especially wary of any unsolicited calls claiming to be from law enforcement, particularly those requesting cryptocurrency payments.