According to Deep Tide TechFlow, on November 29, a study by 5Money and Storible found that from January 2022 to October 2024, the U.S., China, and the U.K. are the main sources of cryptocurrency scams and failed projects among the 1,544 global crypto projects. The data shows that the U.S. accounts for as much as 43% of cryptocurrency scams, while China and the U.K. account for 8% and 7%, respectively. In terms of failed projects, the U.S. represents 33%, China 7.63%, and the U.K. 7.22%.
Research indicates that rapidly growing markets are often breeding grounds for scams and failed projects. For example, the United States is one of the countries with the highest cryptocurrency holdings, and the FBI reported that in 2023 alone, the U.S. lost up to $5.6 billion due to cryptocurrency scams. Additionally, Russia has the highest rate of cryptocurrency project fraud at 24%, while South Korea has the highest project failure rate in the world at 59%.
The report calls for strengthened global regulatory standards to reduce fraud and enhance investor confidence. Currently, Singapore and South Korea have implemented strict consumer protection measures, while the U.K. Financial Conduct Authority (FCA) plans to complete the development of a cryptocurrency regulatory framework by 2026.