Montana State Auditor and Commissioner of Securities and Insurance James Brown is warning residents to exercise extreme caution when investing in cryptocurrency, amid a sharp increase in reported digital currency scams.
Brown said his office has received a growing number of complaints from Montanans who have fallen victim to fraudulent cryptocurrency schemes. The scams have resulted in at least $7.5 million in losses for investors across the state, according to recent investigations.
“We’re going after folks that we believe are fraudulently harming Montanans,” Commissioner Brown said. “I would just tell Montanans before engaging in investment in these digital currencies to be very, very careful about what you’re investing in and be sure that you’re actually investing in a legitimate project.”
Brown attributed the surge in scams to a lack of regulation and oversight in the digital asset space, which creates a ripe environment for bad actors—often operating online and based overseas. These conditions make enforcement and recovery efforts particularly challenging for victims.
“We’re dealing with fraud that is often sophisticated, fast-moving, and increasingly difficult to trace,” Brown added. “The anonymity of the internet and cross-border nature of many of these operations adds a layer of complexity that makes prosecution more difficult.”
The State Auditor’s Office urges anyone who believes they may have been targeted by a crypto-related scam to contact their office immediately. Reports can be made by calling (406) 444-3064.
Brown’s office is continuing to investigate cases and is working with other regulatory and law enforcement agencies to pursue scammers and protect Montana investorss.
By: DNU staff