Big Rugs – Crypto Scams

With certain coins reaching massive heights in 2021, there also were the biggest scams recorded in crypto history playing out, sometimes right in front of the public eye.

Scam examples this year you may have heard of:
1. Squid Game Token
2. SaveTheKids & FaZe saga
3. Adin Ross – MILF token
4. Fake Press Releases – Walmart Cypro Acceptance of LiteCoin and Fake Elon Musk tweets to influence various meme coin fluctuations.
5. Poly Network hack
6. Africrypt
7. Stolen Bored Ape NFTs
(Refer to the mashable.com link below to reference all of these specific scams)

In total, this year, it has been reported about $7.7 Billion was made by individuals who set out with the singular goal of stealing peoples coins and earned income.

In a time when financial stability is rare for the common individual, it is problematic to see such significant gains by scammers.

For example, in 2020 rug pulls resulted in a measly 1% in all total revenue earned through scams in crypto. Whereas in 2021 this percentage has increased to a staggering 37%. This percentage is totaled across all aspects of crypto currency to include NFTs, ‘pump and dump’ coins, etc.

This statistic will have a negative impact on the markets going into 2022, with Fudding and fear driving some coins out of the market entirely. But there are federal organizations currently working on developments to begin leveling the playing field in crypto for people who are trying to make a return on their hard earned money.

The Secret Service has been referred to in previous blogs, but they are attempting to ramp up their attempts to counter scams such as we have seen this year. With their calculations of scams nearing, or possibly surpassing, the $100 Billion mark, the last few months has given rise to Counter Crypto-Scam units and their development within the federal agency.

In addition, on a state level, there has been alerts sent out to citizens in the form of legislation being passed to begin cracking down on organizations who are generally working outside of state guidelines in association with crypto markets as their focus. US North Eastern states like Massachusetts and New York have been blazing the legal path over the last decade with 2021 being no acceptation.

New York has issued cease orders on various companies and their operations due to illegal practices being conducted to fluctuate crypto markets. Massachusetts has opened federal investigations into multiple companies and coins but has specifically targeted ‘PlexCoin’ in an attempt to adhere to the numerous complaints pouring in against the coin. Texas has also begun moving on certain scams in the form of corporate firms with the most famous being ‘Treasure Growth Investments’ which saw staggering gains up to 120% at certain points this year due to their illegal aspects within their operation.
(Links will be posted below in regards to these three situations. These links are to the federal websites in correlation with the investigations referenced.)

To see the states attempting to enforce upon illegal operations is a relief, but still does not alter the fact that countless individuals have been robbed with a significant unlikelihood of that money being returned to the people, without serious effort from the men and women working within the federal agencies conducting the investigations.

The question of federal oversight within cypto has been heatedly debated within the last year. The counter arguments are strong on both sides. But with soaring threats to the crypto markets increasing at such a rapid rate, the necessity to have minor oversight is apparent. With federal aid, and as countermeasures against scams develop, the 37% we see today will significantly dwindle in the coming years. But as technology progresses, so to do the complexity of online scams. In short, the best weapon against any crypto based scam is common sense and thorough independent research.

References:

– 7 Crypto Scams – https://mashable.com/article/biggest-cryptocurrency-scams-2021

– Secret Service Report – https://www.secretservice.gov/newsroom/releases/2021/12/us-secret-service-names-national-pandemic-fraud-recovery-coordinator

– PlexCoin Investigation – https://www.sec.gov/divisions/enforce/claims/plexcorps.htm

– Treasure Growth Investments Investigation – https://www.ssb.texas.gov/news-publications/x-does-not-mark-spot-commissioner-stops-treasure-growth-investments-fraudulently

https://www.cnbc.com/2021/12/20/crypto-news-7-billion-dollars-stolen-in-crypto-scams-in-2021-radioshack-defi.html



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