As crypto frauds sweep across the United States, the state of Montana is taking action to protect its residents—especially vulnerable seniors—from digital asset fraud. A sharp rise in financial scams has triggered a regulatory push, with lawmakers and regulators working to clamp down on deceptive crypto schemes.

Commissioner Sounds the Alarm

Montana Commissioner of Securities and Insurance James Brown issued a stern warning this week about the growing threat of cryptocurrency-related fraud. He cited the Federal Trade Commission’s 2024 report, which revealed that Americans lost over $12.5 billion to fraud—a staggering 25% increase from 2023.

Brown noted that Montana’s ageing population is particularly at risk, with the state ranking sixth in the U.S. for residents over 65. Scammers continue to exploit older citizens using increasingly sophisticated digital tactics, often under the guise of crypto investments or romantic connections.

New Legislation for Digital Asset Oversight

In response, Montana is moving toward stronger digital asset regulation. A new bill, backed by Brown, is under consideration in the state legislature. If passed, it would empower the auditor’s office to oversee companies issuing network tokens—a move aimed at bringing blockchain-based businesses under proper scrutiny.

Brown argued that this legislation would position Montana as a national leader in digital asset governance, balancing innovation with consumer protection. “This would put Montana at the forefront of economic innovation and growth,” he said, highlighting the importance of striking a regulatory balance.

The Rise of ‘Pig Butchering’ Scams

Among the most alarming scams is the so-called “Pig Butchering Scheme”—a term derived from the Chinese phrase “sha zhu pan.” This tactic involves scammers establishing fake online relationships to gain trust before encouraging victims to invest in fraudulent crypto platforms.

Once emotionally invested, victims are coaxed into depositing large sums, often leading to devastating financial losses. In 2024 alone, Montana reported 15 such cases, with losses totalling nearly $900,000. However, authorities believe the true figure is likely much higher, due to underreporting.

Call for Vigilance and Action

Brown urged residents to stay alert, especially when approached with unsolicited investment offers, requests for secrecy, or promises of unusually high returns. He encouraged victims to come forward, pledging continued efforts to hold scammers accountable.

“I’ve directed my office to take a strong and aggressive stance against scammers,” Brown said, reiterating the agency’s commitment to protecting consumers while supporting the state’s evolving crypto economy.

As Montana tightens its grip on crypto fraud, its strategy may become a model for other U.S. states facing similar challenges in the rapidly evolving digital asset space.