Experts suggest that recent trends in the cryptocurrency industry indicate a growing surge in crime, linked to memecoins and a lack of proper regulation.
Reasons for Crime Surge in Cryptocurrency
Blockchain investigator ZachXBT stated that cryptocurrency has historically been susceptible to abuse. However, this trend has noticeably increased since politicians launched memecoins and numerous court cases were dropped. He also points out that "influencers and key thought leaders in the crypto space face zero repercussions for scamming their followers."
Impact of Lack of Regulation
ZachXBT notes that the lack of regulation and the pursuit of projects that fail to disclose paid ads contribute to the so-called supercycle of criminal activity. He mentions: "If they had spent time regulating it instead of going after open source developers, this phenomenon wouldn't be so prevalent."
Legal Actions Against Scammers
Meanwhile, some scammers in the crypto space are facing legal consequences. In a notice from the US Department of Justice, it was announced that over $225 million linked to cryptocurrency investment scams had been seized. Additionally, a man in New Zealand was arrested in connection with a global cryptocurrency fraud operation that allegedly stole 450 million New Zealand dollars.
Thus, the issues surrounding crime in the cryptocurrency industry emphasize the need for improved regulation and enforcement to protect investors and law-abiding market participants.
