Edward “Coach” Weinhaus, the Founding Executive Director of the CAFE Association, addressed the issue of crypto fraud as a shared problem and outlined plans to educate consumers and support responsible companies. His statement was released in a press release on the CAFE Association website.
“Fraud isn’t just a consumer problem — it’s an industry problem,” said Edward “Coach” Weinhaus. “Anna, Erica, and I formed CAFE to stand at the intersection of consumer protection and industry responsibility. Our mission is to protect vulnerable populations, provide trusted resources, and support companies that are committed to doing the right thing.”
According to law enforcement and consumer data, financial fraud and scams are prevalent across various sectors of the economy, not limited to cryptocurrency. Rising losses have been reported from multiple channels including bank transfers, payment cards, wire fraud, check fraud, gift cards, and social-engineering cons. These issues predominantly occur within traditional finance systems. Payment card fraud alone reached an estimated $33.83 billion globally in 2023.
The Federal Trade Commission (FTC) reports that U.S. consumers lost over $12.5 billion to fraud in 2024, marking a 25% increase from the previous year. Investment scams were identified as leading all categories with losses amounting to $5.7 billion. The FTC emphasizes that this surge indicates a higher share of victims losing money rather than merely an increase in reports.
Crypto-related scams represent only a small portion of overall fraudulent activities. Chainalysis data shows that approximately 0.14% of on-chain transaction volume in 2024 was linked to illicit activity. Bitcoin ATMs are considered legitimate tools when used correctly; operators must comply with federal Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations.
Weinhaus is also a lecturer in entrepreneurship at UCLA Anderson School of Management since 2016 and has additional teaching roles at Washington University in St. Louis and Pepperdine University. He is an attorney and founder with expertise in compliance, venture initiation, and public education—skills relevant for setting standards and improving consumer resources at a national association focused on anti-fraud education.
