A recent report has unveiled that the US, China, and the UK are leading contributors to the global surge in cryptocurrency scams and failed projects between January 2022 and October 2024.
The study, conducted by 5Money and Storible, analysed 1,544 cryptocurrency ventures worldwide, highlighting the prevalence of fraudulent schemes and project failures.
The United States accounted for 43% of all crypto scams, a figure attributed to the high number of crypto ventures launched in the country and major collapses such as FTX in 2022. China and the UK followed with 8% and 7%, respectively.
In terms of failed projects, the US again led, responsible for 33% of global failures. China contributed 7.63%, while the UK accounted for 7.22%. Other notable countries included South Korea and Singapore, each with over 6% of failed ventures.
Russia recorded the highest scam rate, with 24% of its crypto projects flagged as fraudulent.
Swiss developers followed with 22%, while Chinese projects ranked third at 20%. Vietnam also featured prominently, with 12% of its ventures identified as scams.
On the failure front, South Korea topped the list, with 59% of its crypto projects deemed dead. Singapore followed at 54%, and the UK, Canada, and the Netherlands each reported a 50% failure rate. Vietnam ranked sixth, with a 42% failure rate.
The report emphasised that crypto scams thrive in regions experiencing rapid market growth. For example, the FBI reported that Americans lost a staggering $5.6 billion to crypto scams in 2023. Popular schemes, such as “pig butchering,” manipulate victims emotionally to invest in fraudulent crypto ventures.
One notable case involved Daren Li, a dual citizen of China and St. Kitts and Nevis, who laundered $73 million through a network of shell companies and crypto wallets.
Another victim, Philadelphia-based tech professional Shreya Datta, lost $450,000 to a fake crypto app after being duped on a dating platform.
The findings underscore the urgent need for stricter regulations to combat fraud and restore investor confidence. The UK’s Financial Conduct Authority (FCA) plans to finalise its crypto regulatory framework by 2026, noting that one in seven UK adults currently own cryptocurrency.
Meanwhile, countries like Singapore and South Korea have already implemented robust consumer protection measures to curb fraudulent activities.
