According to a study by 5Money and Storible, from January 2022 to October 2024, the US, China, and the UK are the main sources of crypto scams and failed projects among 1,544 global crypto projects. Data shows that the US accounts for as much as 43% of crypto scams, while China and the UK account for 8% and 7%, respectively. In terms of failed projects, the US accounts for 33%, China for 7.63%, and the UK for 7.22%.
The research points out that rapidly growing markets often serve as breeding grounds for scams and failed projects. For example, the US is one of the countries with the highest cryptocurrency holdings, and the FBI reported that in 2023 alone, the US lost as much as $5.6 billion due to crypto scams. Moreover, Russia has the highest rate of crypto project scams at 24%, while South Korea has the highest project failure rate globally 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 UK Financial Conduct Authority (FCA) plans to complete the formulation of a crypto regulatory framework by 2026.