In 2024, the cryptocurrency market saw a remarkable surge, and this trend has continued into 2025, leading to an increase in crypto crimes.
Bitcoin continues to surpass new milestones daily after crossing the $100,000 threshold. The global crypto market’s valuation has exceeded $3 trillion. This meteoric rise has drawn unprecedented attention from investors, institutions, and, unfortunately, cybercriminals.
The 2025 Chainalysis Crypto Crime Report estimates illicit crypto activity reached $40.9 billion in 2024. This could potentially climb to $51 billion, with the forecasted statistic driven by professionalised cybercrime networks leveraging stablecoins, decentralised finance (DeFi) exploits, and AI-driven scams.
As cryptocurrency prices soar, so does the incentive for illicit activities, including hacks, scams, ransomware, and money laundering. In this article, Crypto Guide GH explores why crypto crimes are rising and provides actionable steps to stay safe in this volatile digital landscape.
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Why Crypto Crimes Are Surging
The recent price boom, fuelled by regulatory optimism, institutional adoption, and events like the approval of Bitcoin exchange-traded funds (ETFs), has made cryptocurrencies a prime target for criminals.
High prices increase the value of stolen assets, while the pseudonymous nature of blockchain transactions offers cover for illicit activities.
According to Chainalysis, stablecoins (examples include BUSD, USDT, and USDC) now account for 63% of illicit transaction volume. Many hackers and scammers have adopted stablecoins due to their speed, liquidity, and regulatory blind spots.
Criminals exploit these features to launder money through mixers, cross-chain bridges, and DeFi protocols. This makes tracking difficult.
Moreover, the professionalisation of cybercrime has escalated the threat. Sophisticated syndicates, including Lazarus Group (North Korean-linked hackers), stole about $1.34 billion in 2024. Private Key compromises have been a primary attack vector.
AI-powered scams, such as deepfakes and phishing, have grown more convincing. Pig butchering scams, where fraudsters build trust before draining victims’ wallets, caused $3.5 million in U.S. losses in 2023 alone.
The promise of quick profits in a bullish market also fuels pump-and-dump schemes and rug pulls, with 3.59% of new tokens in 2024 exhibiting rug-pull behaviour.
Physical crimes are also rising. Posts on X (formerly Twitter) highlight violent extortion attempts targeting crypto elites. The allure of untraceable assets and flashy lifestyles fuels some of these activities.
As cryptocurrencies become mainstream, they’re increasingly used for traditional crimes like drug trafficking, money laundering, and even terrorism financing. Terrorist organisations leverage unhosted wallets and privacy coins like Monero’s XMR.
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How to Protect Yourself from Crypto Crimes
The surge in crypto crimes demands vigilance. Here are practical steps to safeguard your digital assets:
Use reputable platforms
Trade only on well-established, regulated exchanges with strong security protocols. Always use and maintain two-factor authentication (2FA) and Know Your Customer (KYC) requirements. Avoid platforms similar to Huione Group that operated within shady regions of the globe. Huione Group was recently targeted by FinCEN for scam facilitation. Centralised exchanges remain primary targets, having lost over $13 billion to thieves in the past decade.
Secure your private keys
Private Key compromises accounted for 43.8% of stolen crypto in 2024. Store keys in hardware wallets (cold storage) like Ledger or Trezor, kept offline to prevent hacking. Never share your seed phrase, and use secure, encrypted backups.
Enable multi-factor authentication
Use 2FA on all crypto-related accounts, preferably with authenticator apps or hardware tokens rather than SMS. Although SMS is considered safe, it is vulnerable to smishing attacks. Smishing is where fake texts trick users into revealing sensitive information. This is a growing threat you should watch out for.
Beware of phishing and AI scams
Avoid clicking links in unsolicited emails, texts, or social media messages. AI-driven scams, like deepfakes mimicking trusted figures, are increasingly sophisticated. Verify the authenticity of communications directly through official channels.
Research before investing
Pump-and-dump schemes and rug pulls thrive in bullish markets. Investigate projects thoroughly, checking whitepapers, team credentials, and community feedback. Avoid tokens with sudden price spikes or heavy social media hype. This is because the majority of new tokens in 2024 were rug pulls.
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Monitor transactions
Regularly check your wallet and exchange activities for unauthorised transactions. Blockchain’s transparency allows tracking, so use explorers like Etherscan to verify transfers. Please promptly report any suspicious activity to your platform’s support team.
Stay informed on regulations to avoid being a victim of crypto crimes
Regulatory changes, like U.S. sanctions on exchanges like Garantex, impact compliance. Stay updated via trusted sources like CryptoGuideGH to avoid using sanctioned services.
Avoid Flashy Displays of Wealth
High-profile crypto holders are targets for physical crimes. Keep your holdings private and avoid sharing details on social media to reduce risks of extortion or theft.
Educate Yourself on Scams related to crypto crimes
Learn to recognise “pig butchering” and approval phishing scams, which caused $374 million in losses in 2023. Be sceptical of unsolicited investment opportunities or relationships built online that promise cryptographic gains.
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Be alert: Should you be wary of crypto crimes?
While cryptocurrency’s rise offers immense opportunities, it also amplifies risks. The 2025 Chainalysis report highlights that illicit activity, which constitutes only 0.14% of the total transaction volume, is evolving through the use of advanced techniques.
Blockchain’s transparency aids law enforcement, but criminals’ use of stablecoins, DeFi, and AI demands proactive measures.
By securing your assets, staying vigilant, and educating yourself, you can navigate this high-stakes environment safely.
As the market expands, your defences must also adapt to stay ahead of the criminals.
22 Comments
These scams are ruining the real representation of crypto. We need more transparency and accountability.
More regulation might help curb crimes, but let’s not stifle innovation. Balance is key to surviving within the cryptocurrency industry.
Just another reason to diversify and not put all eggs in one basket. Crypto’s volatile enough without scams.
Hope this article raises awareness. Crypto’s exciting, but it’s not a game. Be smart, people.
Some investors deserve to be scammed. DYOR (Do Your Own Research) before getting into the crypto scene.
Not surprised by the spike in crimes. Crypto’s still the wild west. More education and awareness needed.
Phishing scams are so common. How can people be so gullible? Use 2FA, folks!!!
Exchanges need to step up security. Users shouldn’t have to worry about losing funds due to hacks.
Been a victim of crypto scam before. It is devastating. Hope people are more aware now.
We need better regulations to protect investors. Can’t just rely on users being cautious all the time.
Can’t believe the numbers. Guess its true what they say: Where there’s crypto, there’s crime.
Scammers always follow the money. Higher prices equals more opportunity for hacks and scams. Stay vigiltant, everyone!
The surge in scams is a sign of the industry’s growth. More people are getting interested, and scammers are taking advantage.
Not surprised. Crypto’s anonymity makes it a magnet for scammers. Can’t wait for more regulations.
While this report should signal caution, I believe hacks and scams are a small price to pay for the potential gains in crypto. I think the asset class is a risk worth taking.
I’ve been following the recent price surges and was thinking of investing. Guess I need to be more cautious now.
The cryptocurrency needs to come together to prevent scams. We can’t rely on regulators alone.
Despite the positives they present, such news and reports is why I stick to traditional investments. Crypto is too volatile and risky for me.
Crypto security must improve. Every year we continue to see reports about billions of dollars being stifled away. Users cannot always protect themselves from some of these highly sophisticated hackers.
Like some people, I also lost a substantial amount of money to phishing scam last year. Be careful guys. Research thoroughly about projects before throwing your hard-earned money into their related cryptocurrencies.
Scammers always follow the money. With crypto prices surging, it’s no surprise hacks and scams are on the rise.
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