A Montana Securities Commissioner said roughly $191,000 in restitution has been secured for Montanans defrauded by a Delaware-based bitcoin-mining MLM operating in Columbia Falls, with assets liquidated to fund payouts.

Montana is seeing a growing trend of digital-asset fraud, with crypto and bitcoin scams now the leading source of investment losses in the state, surpassing romance scams.

The scheme offered mining packages that promised a share of bitcoin production and higher returns for recruiting others but misused investor funds, failed to deliver promised payouts, and prompted a court order and asset seizures to fund restitution.

Montana’s Securities Commissioner expressed optimism that victims were made whole and underscored ongoing anti-fraud efforts, while recognizing the broader promise of digital currencies in commerce and the need for robust regulation and enforcement.

Regulators in Montana view bitcoin mining as a security requiring registration and plan to propose legislation for the 2027 Legislature to expand the state auditor’s oversight of digital transactions; the office is also deploying AI tools to detect fraud.

Restitution came directly from the company and its assets, not from a state fund, and includes liquidated property in Columbia Falls used to fund payouts.

Criminal activity in crypto continues to rise, as TRM data show illicit crypto volume reached about $158 billion in 2025—up roughly 145% from 2024—with nearly 150 hacks totaling around $2.87 billion, and Russia-linked flows dominating sanctions-related crypto activity amid ongoing illicit use globally.