TechFlow news, on November 29, according to a study by 5Money and Storible, between January 2022 and October 2024, among 1,544 global crypto projects, the United States, China, and the United Kingdom were the primary sources of cryptocurrency scams and failed projects. The data shows that the U.S. accounted for as high 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 study noted that rapidly growing markets are often breeding grounds for scams and project failures. For example, the U.S. is one of the countries with the highest cryptocurrency ownership, and the FBI reported that losses from crypto scams in the U.S. reached as high as $5.6 billion in 2023 alone. Additionally, Russia had the highest crypto project fraud rate at 24%, while South Korea had the world's highest project failure rate at 59%.
The report calls for stronger 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 Financial Conduct Authority (FCA) plans to complete the development of its crypto regulatory framework by 2026.
