TRM Labs Reports on Global Crypto Frauds
According to a report issued by blockchain analysis firm TRM Labs on June 28th, a total of $7.8 billion was reportedly paid out to global cryptocurrency pyramid and Ponzi schemes in 2022. Furthermore, the report by TRM stated that an additional $1.5 billion in cryptocurrency was used on darknets for unlawful activities, and another $3.7 billion in crypto was lost due to hacks or other malicious activities.
In total, TRM Labs alleges that $9.04 billion worth of cryptocurrency has been sent to various types of financial fraud schemes. Despite the current bear market causing a drop in crypto prices, it appears that crypto-related crime has not decreased in any way. The firm commented:
Researchers reported that the ten biggest crypto Ponzi and pyramid schemes represented approximately 54% of the entire sum. Additionally, it is said that 40% of the total investment fraud schemes that were operational in 2022 involved Tron, mainly through the USDT token issued on the blockchain, in comparison to just 17% in 2021.
Major Crypto Ponzi and Pyramid Schemes Prosecuted in 2022
In 2022, two of the most significant crypto Ponzi schemes to be prosecuted were Forsage and Trade Coin Club. Forsage enticed investors by guaranteeing them high profits through Ethereum (ETH) and BNB Chain contracts, ultimately obtaining approximately $974 million from two related entities. On the other hand, Trade Coin Club promised high returns through its cryptocurrency exchange, successfully obtaining more than $295 million from over 100,000 investors prior to its failure. Both companies have since been penalized by the U.S. Securities and Exchange Commission.
Does SEC Chair Gary Gensler have the ultimate authority when it comes to crypto regulation?
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