$35B Crypto Fraud Global Shock: NYPD Needs Blockchain Training to Fight $100M NY Scams

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Crypto Fraud Hits $35B Globally, $100M in New York Alone: TRM Labs Report

Key Highlights

  • Global crypto fraud totaled $35B in 2025; New York alone saw over $100M in reported losses.
  • NYPD officers need mandatory blockchain training to track crypto scams from intake to prosecution.
  • Tools like the Beacon Network enable real-time crypto scam interdiction and coordinated recovery.

A recent report from TRM Labs estimates that around $35 billion in cryptocurrency was involved in scams worldwide in 2025. Just in New York, TRM Labs data shows over $100 million in crypto fraud during that year. However, these numbers likely represent only the fraud that has been discovered and reported.

A recent report from TRM Labs points out that many people don’t report cryptocurrency scams, often because they feel ashamed, aren’t sure who to contact, or think their money is gone for good. Because of this underreporting, the actual total losses from these scams each year are likely much higher than reported figures, probably exceeding $200 billion globally.

Crypto fraud starts at the precinct

While cryptocurrency scams often happen internationally, investigations usually start with local police. When someone reports being scammed, they typically go to their local police station – for example, an NYPD precinct – bringing evidence like records of the money transfers, screenshots from trading platforms, message conversations with scammers, receipts from cryptocurrency exchanges, and even QR codes used in the transactions.

TRM highlights that a wallet address acts as a lasting, public record used to track transactions. A transaction hash is a permanent record of when a transfer happened, letting investigators follow funds as they move between wallets and different blockchains. Also, things like messaging accounts and website domains frequently link to the same underlying infrastructure used in various related activities.

The report cautions that without properly recording these key details, training officers to understand their importance as evidence, and quickly passing cases to specialized teams with blockchain analysis tools, the chances of successfully stopping illicit activity will quickly decrease.

Money from scams typically moves quickly – often within a day or two – through multiple digital wallets, different blockchains, and finally into standard exchanges. This speed is intentional, making it difficult for investigators to track the funds.

Embedding digital asset literacy in law enforcement

The report emphasizes that police officers need the right tools and training to fight cryptocurrency fraud. It recommends that the NYPD include digital asset education as required training at the police academy, ensuring all new officers know how to recognize and handle blockchain evidence from the beginning of their careers.

Because almost all crimes involve money, and digital assets are often used in those crimes, all NYPD officers need the training and resources to track financial activity from the start of an investigation through the legal process.

Operational reinforcement through blockchain analytics

The report highlights that New York’s financial regulator, the DFS, is leading the way by demanding that companies dealing with digital assets use blockchain analysis to ensure they’re following the rules and keeping track of transactions.

TRM highlights a shift in how analytics are used, moving beyond just reporting to actively preventing issues as they happen.

In my research, I’ve been looking at the Beacon Network, which is a really important tool in combating crypto scams. It’s essentially a network that connects law enforcement, cryptocurrency exchanges, and financial institutions – representing around 85% of all crypto transactions happening on centralized platforms. The way it works is that these partners share information about wallets linked to scams and get alerts when those funds move through a participating platform. This allows for quick investigation, the potential to freeze assets, and a more coordinated effort to recover stolen funds.

Prosecutors leverage crypto data to disrupt scams

The report highlights how New York prosecutors are becoming skilled at tracking down cryptocurrency scams. For example, the Brooklyn District Attorney’s office, led by Eric Gonzalez, successfully seized 70 websites used to trick people in the Russian community into investing in fraudulent cryptocurrency schemes.

According to TRM, this achievement was thanks to specialists like Assistant District Attorney Alona Katz. She skillfully combined victim stories, key evidence, data about the online systems used, and blockchain transaction details to create effective investigations that led to real action, rather than just collecting information.

Aligning law with crypto-enabled enterprise-scale fraud

TRM points to the RIP OFF Act as a crucial weapon in fighting cryptocurrency scams. The law specifically covers virtual currencies, confirming that blockchain records and digital evidence are admissible in grand jury investigations. This enables prosecutors to tackle widespread fraud effectively, instead of having to deal with it as a series of smaller cases.

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2026-03-05 13:56