Lax Oversight and Memecoins Trigger ‘Crime Supercycle’ in Crypto

Written By:
Pari Shukla

Reviewed By:
Dhara Chavda

Lax Oversight And Memecoins Trigger ‘Crime Supercycle’ In Crypto

Blockchain experts warn that crypto scams are surging, creating a “crime supercycle.” This is fueled by memecoins that are promoted by politicians like Donald Trump, weak rules, and U.S. regulators dropping court cases. 

ZachXBT, a crypto investigator, said in an X post that “crime supercycle is indeed very real” as politicians are pushing the memecoins, and influencers are also tricking their followers without punishment. He stated that this is all leading to more scams, like fake websites and projects that steal money.

ZachXBT said the lack of proper rules lets scammers thrive, as regulators focus on innocent developers instead of stopping shady promotions. A report from Hacken says crypto hacks cost $2 billion in early 2025, with $96 million from phishing and $300 million from rug pulls.

Taylor Monahan, another expert, has stated that the scammers keep going because they make easy money with no consequences. She called the crypto world a “mess,” full of hackers doing things like romance scams and ransomware. Some scams are even linked to North Korea.

Despite the surge in scams, law enforcement has managed to apprehend some criminals. Authorities have initiated measures to combat scams, yet they still require more robust regulations to halt this surge in criminal activity. 

The U.S. Department of Justice said the Secret Service recently filed to seize $225 million tied to crypto scams. In May, a man from New Zealand was arrested for a $265 million crypto fraud that affected people worldwide. 

Experts have stated that these cases show crypto crimes are a big problem, and stronger rules are needed to stop them. With memecoins getting popular and few regulations in place, investors need to be careful to avoid being tricked by clever scammers.



Share This Article
Follow:
Parmeshwari Shukla is a Content Writer with over 3 years of experience in digital media, including 1 year in crypto news and journalism. She holds a Master’s degree in Mass Communication and a certification in Sports Journalism, bringing versatility and a strong editorial sense to her work.
Dhara Chavda is a Content Strategist and Research Analyst with 5 years of experience in the crypto industry. She holds a Bachelor’s degree in Computer Engineering and brings a strong technical perspective to her work. Dhara specializes in DeFi, price analysis, and the core mechanics of cryptocurrencies. She also works on crypto news, including research, analysis, and assigning stories, ensuring accurate and timely coverage of key developments in the space.