Crypto Scams Cause $4.6B Losses in 2024

Cryptocurrency scams caused $4.6 billion in losses in 2024, with AI-powered deepfakes used to impersonate public figures and evade security, according to a joint report by Bitget, SlowMist, and Elliptic. Scammers now leverage fake 'flash coin' schemes and pump-and-dump tactics, manipulating retail traders through social media and rapid trading advice. A recent law enforcement operation in Lucknow uncovered a money laundering ring using illegal USDT trades on Telegram, highlighting the international scope and technical complexity of these scams. Many operations involve foreign handlers and encrypted communications, making detection and prosecution challenging. Crypto community leaders urge robust risk management as market sentiment shifts between traditional finance and digital assets, creating new vulnerabilities. The evolving sophistication of crypto fraud requires increased vigilance as scams become harder to detect.