Crypto Scam Epidemic: US Founders Responsible for Nearly Half of All Scam Projects

A new study reveals that the United States leads in both scam and failed crypto projects.

US Leads in Crypto Scams, Study Finds

According to a study examining more than 1,500 crypto projects, U.S. founders account for 43.4% of all identified scam crypto projects in 2024. Between January and October, the country’s share of total scam crypto projects identified easily dwarfs the combined share (19.76%) of the next four countries.

The U.S.’s disproportionate share of crypto scams is attributed to the large number of innovative projects started by American founders, the 5money study report concludes. China, which banned cryptocurrency activities a few years ago, is second with 7.55%, followed by the United Kingdom (U.K.) with 6.51%. Singapore and Australia round out the top five with 3.1% and 2.6%, respectively.

For dead crypto projects, the U.S. again leads with 33.36%. China is a distant second with 7.63%, slightly ahead of the U.K.’s 7.22%. South Korea ranks fourth with 6.74%.

The study, conducted jointly by 5money and Storible, ranked Russia (23.81%) first in terms of the proportion of scam crypto projects to total projects launched. Switzerland follows with 22%, and China with 20%. Japan and Israel round out the top five with 19.05% and 15.79%, respectively.

The report notes that regulatory gaps and market enthusiasm can significantly influence a project’s success or failure. It adds that scam crypto projects are found in both emerging markets like Vietnam and developed countries like the U.S., highlighting the need for standardized regulations.

“As crypto adoption expands, understanding these trends will be key to fostering a more stable and reliable ecosystem,” the report added.

Meanwhile, the study found that despite its emergence as a blockchain innovation hub, Vietnam faces significant challenges with project legitimacy and longevity, with 12% of its crypto projects being scams. Some 42% are classified as dead which saw the country rank among the global top ten in both categories.

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