The FBI has revealed that investment fraud involving cryptocurrencies accounted for the largest share of investment losses in the United States in 2023. According to a recent report, losses from crypto-related scams rose from $2.57 billion in 2022 to approximately $3.94 billion in 2023, marking a 53% increase. These losses constituted around 86% of all investment fraud losses in the country, which totaled $4.57 billion for the year. The FBI highlighted that an increasing number of victims are being lured into crypto scams by the promise of high returns on their investments.
One of the most prevalent types of crypto scams is romance scams, where criminals adopt fake online identities to gain the trust and affection of victims. They then convince the victims to send cryptocurrencies, only to disappear afterwards. In 2023, Chainalysis reported that romance scams were responsible for at least $374 million in suspected stolen crypto.
Additionally, Cointelegraph reported that over 324,000 crypto users fell victim to phishing scams in 2023, resulting in the loss of around $295 million in digital assets. These scams involved wallet drainers targeting unsuspecting individuals.
It is not just the United States that is experiencing a rise in crypto scams; other countries around the world are also grappling with this issue. In April 2023, the Australian Competition and Consumer Commission (ACCC) revealed that Australians lost 221.3 million Australian dollars ($146.9 million) to investment scams involving crypto as the payment method in 2022, marking a significant 162.4% increase from 2021.
In other news, the owner of a CryptoPunk Seedphrase with seven traits has partnered with Sotheby’s, a renowned auction house, in the world of non-fungible tokens (NFT) collection.