Cryptocurrency users reported nearly $82 million in losses in crypto scams between October 2020 and March 2021, according to the US Federal Trade Commission (FTC).
This was recorded as 10 times the amount reported within the previous 6 months.
FTC said Cryptocurrency scams on the rise as the market rallies. From October 2020 to March 2021, Bitcoin increased from $10,000 to $59,000, which equates to a 490% increase. The price of Ethereum also increased from $360 to $1,940 during the same time period.
“Cryptocurrency in recent times is becoming a super profitable investment channel and attracting a lot of investors to participate. With the value of bitcoin skyrocketing in recent months, more and more inexperienced and ignorant investors want to put their money into this market. They all just become easy prey for scammers,” the FTC said.
FTC data Based on user-reported numbers, the actual loss could be much higher than $82 million. In addition, this number is only reported by individuals and investment groups, not taking into account organized attacks on exchanges.
The more popular Bitcoin, the easier it is for criminals to live
Users who report to the FTC are not the only victims of crypto-related scams.
In Australia, scammers have pocketed more than 20 million USD in crypto scams in the second half of 2020, according to a report published earlier this month by the Australian Competition and Consumer Commission. The commission pointed out that cryptocurrencies are the second most popular payment method for scammers after bank transfers.
In the United Kingdom, the National Crime Agency is also concerned that the increasing popularity of cryptocurrencies could increase the crime rate associated with this sector. In its annual report, the agency stated that increasing Bitcoin adoption could make it easier for criminals to operate.
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