Crypto experts are reporting a sharp rise in scams in the cryptocurrency space, linking it to the popularization of memecoins and lack of regulation.
Crypto Scams and Memecoins
According to ZachXBT, a crypto investigator, the rise in crypto fraud is directly related to memecoins promoted by politicians like Donald Trump. He noted that this leads to an increase in fraudulent schemes, including fake websites and projects that steal money.
Lack of Regulation and Its Consequences
ZachXBT points out that the absence of proper rules allows scammers to thrive, as regulators focus on innocent developers instead of stopping unethical promotions. A report from Hacken states that crypto scams cost $2 billion in early 2025, including $96 million from phishing and $300 million from rug pulls.
Law Enforcement Measures and Their Effectiveness
Despite the surge in scams, law enforcement has successfully apprehended some criminals. The U.S. Department of Justice reported that the Secret Service filed to seize $225 million tied to crypto scams. However, experts like Taylor Monahan emphasize that more stringent regulation is still needed to combat scammers.
The rise in crypto scams showcases the need for stronger rules in the cryptocurrency space. Given the popularity of memecoins, investors must exercise caution to avoid falling victim to clever scams.
