With insights from a report by TRM Labs, a blockchain intelligence firm, on June 28, 2023, about $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2022. It is expected by TRM that about $1.5 billion cryptocurrency was used for illegal activities and about $3.7 billion cryptocurrency was lost in hacks or exploits, stated Cointelegraph.
Sources revealed that about $9.04 billion cryptocurrency was used for financial fraud schemes. Inspite of a fall in cryptocurrency prices from the ongoing bear market, cryptocurrency-based crime is increasing, Cointelegraph added.
“Investment fraud centers on the solicitation of funds for fraudulent investments or projects; these often involve fake initial coin offerings (ICOs), unregistered securities or fraudulent investment platforms. Investment fraud involving cryptocurrency rose by nearly 200% from USD 907 million in 2021 to USD 2.57 billion in 2022,” TRM explained.
Furthermore, about ten of the largest cryptocurrency Ponzi and pyramid schemes accounted for about 54% of the total amount, Cointelegraph concluded.
(With insights from Cointelegraph)