CFPB Analyzes Trends in Crypto Asset Consumer Complaints

The CFPB analyzed complaints relating to crypto assets between October 2018 and September 2022 and found that the complaint rate increased year to year. The CFPB questioned whether crypto asset platforms are effectively monitoring for misconduct.

In a Complaint Bulletin, the CFPB said the most commonly reported issues were fraud and scams, which made up approximately 40 percent of total complaints. The CFPB also warned that crypto assets are very commonly targeted in hacks and other exploits due to generally lax account and exchange security, identifying one hacking group that had stolen over $2 billion since its inception.

Additionally, the CFPB found that many consumer complaints targeted exchanges, with customers raising (i) account access issues, (ii) liquidation issues, (iii) poor customer service and (iv) unexpected fees and other costs. Customers also complained about exchanges freezing assets, or that funds were not made available when promised due to the exchange's inability to liquidate assets. The CFPB said that many crypto asset exchanges provided poor customer service, often making it difficult for consumers to obtain restitution for hacking or fraud. Customers also accused exchanges of "hiding behind the terms and conditions" to avoid any accountability.

The CFPB encouraged consumers to familiarize themselves with common crypto asset scams and conduct thorough due diligence prior to committing to a crypto asset investment. The CFPB also encouraged consumers to report any suspicious activity to either the CFPB or FTC.