When Politicians and Memecoins Team Up to Supercharge Crypto Crime 🚀💰

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So, here we are. In a world where political figures, like the one with the tiny hands, are launching their own memecoins, and US regulators are dropping crypto court cases like it’s hot. According to some blockchain crime investigators, this has all led to a crypto “crime supercycle.” 🤯

Blockchain investigator ZachXBT, who probably spends his weekends solving crimes in his pajamas, posted on X (formerly known as Twitter, because rebranding is a thing now) that crypto has always been a bit of a wild west, but things have gotten way worse since politicians started their own digital currencies and court cases were dropped like last year’s fashion. 🤷‍♂️

He also pointed out that crypto influencers and key thought leaders (aka the people who tell you to buy into the next big thing) face “zero repercussions” for scamming their followers. Like, zero. Nada. Zilch. 🤦‍♀️

“But hey, if you’re into the whole black hat, phishing, social engineering, or robbery thing, now’s the time to switch to gray hat activity. The environment is just so favorable, it’s like a buffet for scammers,” ZachXBT added, with a side of sarcasm. 🍽️

Slow Regulation: The Gift That Keeps on Giving

A lack of regulation, and the failure to crack down on projects that didn’t disclose paid ads, have also played a role in this so-called supercycle. According to ZachXBT, if regulators had spent more time regulating and less time going after open-source developers or blue-chip decentralized protocols, we might not be in this mess. But hey, hindsight is 20/20, right? 🕵️‍♂️

Over $2 billion was lost to crypto hacks in the first quarter of 2025, with phishing scams making up $96 million, and rug pulls accounting for over $300 million, according to cybersecurity firm Hacken. Just another day in the crypto world, I guess. 🤷‍♂️

Change Unlikely While Scammers Are Raking It In

Blockchain sleuth Taylor Monahan, who probably has a secret lair filled with gadgets, chimed in, saying that scammers are unlikely to change their ways as long as they’re still making a killing. “No social, financial, or legal downsides or friction around this type of behavior. Plus, it’s just so easy and there’s so much instant [money] on the table for doing so,” Monahan said. 🤑

Monahan thinks the crypto space is in a “rough spot” because it’s attracting too many hackers and scammers. “Most have gone all-in over the last two cycles, like romance scams, [North Korea], malware as a service. Ransomware would be the biggest losers if crypto ceased to exist tomorrow,” Monahan said. 🚀

The Law Catches Up, But Not Fast Enough

There are, however, a few scammers facing the law for their crimes. In a Wednesday notice, officials with the US Department of Justice announced the seizure by the Secret Service of more than $225 million linked to crypto investment scams. It’s a start, but it feels like a drop in the ocean. 🌊

In May, a New Zealand man was arrested in connection with a global crypto fraud operation that allegedly stole 450 million New Zealand dollars ($265 million). So, at least some justice is being served, even if it’s a bit late to the party. 🕰️

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2025-06-20 09:09