Rising Tide of Crypto-Related Crime Attributed to Political Influence and Regulatory Laxity

Overview

In a concerning trend, blockchain investigators have identified a "crime supercycle" in the cryptocurrency space, linked to the promotion of certain memecoins by influential political figures, including former President Donald Trump. This surge in crypto-related crimes has been exacerbated by lax regulatory oversight and abandoned court cases, which have created an environment ripe for fraudulent activities.

Political Influence and Lack of Regulation

ZachXBT, a noted blockchain investigator, expressed that while the cryptocurrency landscape has always been susceptible to abuse, the current situation reflects a significant increase in deceptive practices largely initiated by political endorsements of memecoins. He noted that the absence of effective regulation has allowed scammers to operate with apparent impunity, saying, "If they had spent time regulating it instead of going after open source developers, the prevalence of scams would not be as concerning.”

His statement highlights a broader issue: key influencers and market leaders face little to no consequences for misleading their followers.

• Key Figures and Recent Data:
  • Over $2 billion was lost to crypto hacks in the first quarter of 2025, with phishing scams accounting for $96 million and rug pulls exceeding $300 million, according to a report by cybersecurity firm Hacken.

Challenges in Policing and Enforcement

Taylor Monahan, another blockchain expert, observed that the absence of repercussions for scammers fuels ongoing criminal activities in the sector. She emphasized that many individuals have committed fully to these illicit practices, stating, "There are no social, financial, or legal downsides… It’s simply too easy, and there’s instant money available."

The ongoing presence of hackers and scammers poses an existential risk to the cryptocurrency ecosystem. Monahan pointed out that romantic scams and ransomware attacks have proliferated, particularly targeting unsuspecting crypto workers.

Legal Actions and Recent Developments

Despite the seemingly rampant criminal activity, law enforcement has begun to close in on some offenders. On Wednesday, the U.S. Department of Justice reported the seizure of more than $225 million linked to various crypto investment scams by the Secret Service. Additionally, a New Zealand national was recently arrested in connection with a global fraud scheme accused of stealing 450 million New Zealand dollars (approximately $265 million).

Conclusion

As cryptocurrency continues to evolve, the challenges of regulation, accountability, and enforcement become increasingly complex. The pressure is mounting for authorities to establish more stringent measures to protect investors and curb the escalating tide of crypto-related crime.

Follow this story for ongoing developments and reactions from advocates and industry leaders as the situation unfolds.

Marcus Reed

Focuses on crime, public safety, and regional events.

Bio: Marcus is a community-based journalist passionate about reporting impactful stories that matter most to readers.