The crypto world is entering what experts are calling a “crime supercycle.” According to blockchain sleuths ZachXBT and Taylor Monahan, the rise of memecoins endorsed by high‑profile political figures—coupled with regulators dropping key cases—has created a fertile environment for scammers. Suddenly, deceptive tactics like phishing, social‑engineering heists, and rug pulls are thriving because scam artists face virtually no consequences.
The crime supercycle is indeed very real.
While it’s true the industry has historically been ripe for abuse it has noticeably increased since politicians launched meme coins and numerous court cases were dropped further enabling the behavior.
Laundering groups and small OTC… pic.twitter.com/jzQRTYeChO
— ZachXBT (@zachxbt) June 18, 2025
ZachXBT highlights how influencers and token promoters routinely deceive their followers, benefiting from a regulatory system that punishes whistle‑blowers and open‑source developers more harshly than fraudsters. The result? First‑quarter 2025 losses from crypto hacks totaled over $2 billion, $96 million from phishing, and more than $300 million from rug‑pulls.
I don’t see why things would change unless those who create new value (grow the pie) are rewarded more than those who extract value / move value in pointless circles.
The current incentives are driven primarily by the lack of risk around hacking/stealing/scamming/extracting. No…
— Tay 💖 (@tayvano_) June 18, 2025
Monahan adds that as long as criminals see easy, high returns and don’t fear legal backlash, the crime wave will continue. She notes that crypto has become a playground for romance scams and even state‑sponsored malware efforts, remarkably using crypto as both the culprit and cure.
Still, some momentum is building in legal circles. U.S. Secret Service recently recovered more than $225 million tied to crypto‑investment scams, and New Zealand authorities arrested a man involved in a $265 million global fraud. But at the project level, many influencers and shady promoters operate with impunity.
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