ChainCatcher message, according to a study by 5Money and Storible, from January 2022 to October 2024, the United States was the main source of cryptocurrency scams and failed projects among 1,544 global crypto projects. The data shows that the U.S. accounted for as much as 43% of crypto scams, while China and the UK accounted for 8% and 7%, respectively. In terms of failed projects, the U.S. accounted for 33%, China for 7.63%, and the UK for 7.22%.
The research points out that rapidly growing markets are often breeding grounds for scams and failed projects. For example, the U.S. is one of the countries with the highest cryptocurrency holdings; the FBI reported that the U.S. lost as much as $5.6 billion due to crypto scams in 2023 alone. Additionally, Russia has the highest rate of cryptocurrency project scams 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 fraudulent activities and enhance investor confidence. Currently, Singapore and South Korea have implemented strict consumer protection measures, while the UK's Financial Conduct Authority (FCA) plans to finalize the cryptocurrency regulatory framework by 2026.