Highlights:
- US founders are responsible for 43% of global crypto scams in 2024 which is the highest among all nations.
- Weak regulations and investor trust make the US a major source of crypto fraud and failed projects worldwide.
- Global cooperation and stronger laws are needed to stop rising crypto scams and rebuild trust in digital assets.
U.S.-based founders are behind 43% of all identified crypto scams in 2024. According to a recent report by Vietnam’s 5money, the U.S. not only leads in scams but also in dead crypto projects. In total, 33% of all dead projects are linked to U.S. founders. The report reveals that this high rate of fraud and failure is damaging the credibility of the crypto industry worldwide. In 2024, more than 1,500 projects were analyzed for fraud and failure.
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According to a report by Vietnam’s 5money, the U.S.-based founders are responsible for a staggering 43.4% of all identified crypto scams in 2024. #USA #CryptoScam #GlobalOrder #Report #CryptoBan #Cryptocurrency #TheCryptocountry #Cryptostan pic.twitter.com/bquGNAJdbj
— Cryptostan.official (@The_Cryptostan) November 21, 2024
Why the U.S. Leads in Crypto Scams
Several factors contribute to the U.S. being the top destination for crypto scams. The country is home to the largest crypto market in the entire world. This makes it a target for both legitimate businesses and scammers. As the U.S. is known for innovation, the country’s reputation draws investors from different regions to their crypto projects.
The lack of clearer regulations in the country allows scammers to operate with little oversight. The report revealed that many American-based crypto projects are not transparent and accountable. These weaknesses are exploited by fraudsters in order to deceive investors. In addition, many scams rely on shady marketing tactics and empty promises of high returns. They are all designed to draw investors in quickly before the project collapses.
The report reveals that U.S. crypto scams often target inexperienced investors. They are designed to get people who are new to digital assets and make it easy for them to profit. Social media platforms and even influencers are often manipulated by scammers to spread their messages. Investors find it difficult to distinguish between actual and fake projects owing to this.
The Impact of Dead Crypto Projects
Another key problem is dead crypto projects. These projects are launched but fail soon after, and investors often experience considerable losses. According to the report, 33% of all dead projects globally are started by U.S.-based founders. Many of these projects were launched during cryptocurrency’s boom years and collapsed after the market conditions shifted.
Countries like South Korea have lower rates of failed projects. South Korea represents only 6.74% of dead projects globally. A lower failure rate could imply that some of the issues found in the U.S. are being prevented by stronger regulatory measures in South Korea.
Another report by the Japan Times shows that digital currencies offered by the government are being exploited by fraudsters. They use them to acquire local currencies by exploiting credit card information.
Japan's Local Digital Currencies Increasingly Exploited By Fraudsters https://t.co/N4sdjp32W3
— Team Albert (@AlbertMylesAM) November 21, 2024
Russia leads with a scam rate of 24%. China accounts for 19.83%, and the U.K. accounts for 15.2%. Stronger regulatory measures are essential to curb the rise of crypto scams. The report calls for more oversight from authorities to prevent bad actors from taking advantage of investors. It also stresses the need for greater transparency in the crypto market. There is a need for better education for investors on how to spot fraudulent projects.
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