In 2025, blockchain security experts ZachXBT and Taylor Monahan are sounding the alarm: crypto scammers have grown bolder amid the end of several high-profile cryptocurrency lawsuits and a wave of public support for meme coins from politicians. Tokens promoted by figures like Donald Trump, coupled with weak regulation and the dismissal of several regulatory cases, have created the perfect conditions for a new “supercycle” of crypto-related crime.
ZachXBT points out that while cryptocurrency has always been vulnerable to abuse, the situation has deteriorated significantly following the political embrace of meme tokens and the halting of key investigations. According to him, crypto influencers and public figures promoting questionable projects face little to no accountability for the scams affecting their followers.
Slow Regulation and New Scam Tactics
Right now, U.S. crypto policy is defined by a lack of clear rules, an inability to tackle projects hiding paid promotions, and numerous other regulatory gaps — all of which have fueled a crime wave. ZachXBT believes that if efforts had been focused on building sensible, effective regulation instead of targeting open-source developers, the situation could have been very different.
The first quarter of 2025 saw record-breaking fraud and hacking incidents. According to blockchain security firms Hacken and PeckShield, over $2 billion in crypto was stolen during this period — the highest figure in the industry’s history. Centralized platforms took the biggest hit, with the Bybit hack in February 2025 resulting in a $1.4 billion loss. In total, hackers stole $1.64 billion in Q1 alone. On top of that, phishing attacks claimed $96 million, and market manipulation schemes siphoned off over $300 million.
Scammers in 2025 are actively leveraging new technologies like AI, deepfakes, and advanced social engineering tactics. Common schemes now include fake celebrity endorsements, rug pulls, phishing websites, and bogus investment offers. In Russia, there has been a rise in crypto scams exploiting social engineering, where victims are persuaded to transfer crypto under the pretense of keeping their funds “safe.”
Criminals Are Cashing In
Taylor Monahan notes that fraudsters see little in the way of obstacles: “There are no social, financial, or legal consequences for this kind of behavior. It’s easy, and it makes enormous money.” She believes the crypto space is in a difficult position, flooded with hackers and scammers using increasingly sophisticated tactics — from romance scams to malware attacks and ransomware campaigns.
But the Law Isn’t Asleep
Despite the prevailing sense of impunity, some criminals are being held accountable for their actions. In March 2025, the U.S. Department of Justice announced the seizure of over $225 million tied to cryptocurrency investment scams. In May, a man was arrested in New Zealand in connection with a $265 million global crypto fraud case.
In short, the U.S.’s new crypto policy has already yielded consequences: the first quarter of 2025 became the worst period in crypto history for scams and hacks. Weak regulation, political backing of meme coins, and rapidly evolving scam technologies have all contributed to this surge. There’s hope, though, that this transitional period won’t last long — and that cryptocurrency will eventually find its rightful place in the modern economy.
