In recent times, there has been a notable increase in crypto-related crime, largely attributed to insufficient regulation and the fear of missing out (FOMO) among retail investors. Experts in cybersecurity have pointed out that losses from crypto crimes reached unprecedented levels in the first half of 2025, surpassing total losses from all of 2024. This surge is linked to the rapid growth of new cryptocurrencies, especially memecoins, which have attracted many inexperienced investors.

Bill Callahan, a former DEA agent and cryptocurrency investigator, highlighted that criminals are taking advantage of the current market conditions where regulatory oversight is minimal. He noted that bad actors can make mistakes yet still profit significantly due to the nature of these scams. The average loss per security incident this year was reported at $4.3 million.

Natalie Newson from CertiK emphasized that various factors have emboldened these criminals. Influencers often launch tokens with dubious intentions, leaving everyday investors vulnerable to scams like pump-and-dump schemes. Law enforcement agencies are struggling with limited resources and complex international laws when it comes to tackling these crimes effectively.

Hank Huang, CEO of Kronos Research, criticized regulatory bodies for their inconsistent responses to crypto crime—swinging between overregulation and underreaction—which has created an environment ripe for criminal activity. Despite increased efforts by law enforcement globally to combat such crimes through targeted actions against illicit marketplaces, experts agree that completely eliminating losses in this decentralized space is unrealistic.

The focus should shift towards minimizing risks for users rather than aiming for zero losses in an inherently risky environment like cryptocurrency trading.

Original article

The article provides an insightful analysis of the rising crypto-related crimes and their impact, offering a comprehensive overview of the current situation.

Actionable Information: While the article does not provide specific steps or tools for readers to take immediate action, it does highlight the need for regulatory bodies and law enforcement to address the issue. It suggests that a shift in focus towards user risk minimization is necessary, which could potentially guide future policy decisions.

Educational Depth: It offers a detailed explanation of the factors contributing to the surge in crypto crimes, including the role of influencers, regulatory inconsistencies, and the nature of scams. The article educates readers on the complex interplay between market conditions, investor behavior, and criminal activities, providing a deeper understanding of the issue.

Personal Relevance: The topic is highly relevant to anyone involved in cryptocurrency trading or investment, as well as those interested in financial markets and cybersecurity. It directly impacts individuals' financial well-being and security, especially in an era where crypto assets are becoming more mainstream.

Public Service Function: The article serves a public service by bringing attention to the rising crypto crime rates and the challenges faced by law enforcement and regulatory bodies. It highlights the need for improved strategies and resources to tackle these crimes effectively, which could potentially lead to better protection for investors and the public.

Practicality of Advice: The advice provided, such as the need for regulatory bodies to strike a balance between overregulation and underreaction, is practical and realistic. It acknowledges the complexities of the issue and suggests a pragmatic approach to addressing it.

Long-Term Impact: By shedding light on the issue and proposing a shift in focus towards risk minimization, the article contributes to long-term solutions. It encourages a proactive approach to crypto crime prevention, which could lead to more sustainable and secure cryptocurrency ecosystems in the future.

Emotional/Psychological Impact: While the article may evoke feelings of concern or awareness, it does not aim to exploit these emotions for sensationalism. Instead, it provides a balanced and informative perspective, empowering readers with knowledge to make informed decisions and potentially take action to protect themselves.

Clickbait/Ad-Driven Words: The language used in the article is professional and devoid of sensationalism. It presents the information in a factual and objective manner, without resorting to dramatic or exaggerated claims.

In summary, the article offers valuable insights and analysis, providing a well-rounded understanding of the issue. While it may not provide immediate actionable steps for readers, it contributes to the public discourse on crypto crime and highlights the need for collective action and improved strategies.

The rise of crypto-related crimes, as described, poses a grave threat to the very foundations of our communities and the moral order that has sustained us for generations. It is a betrayal of the sacred bonds that unite families, protect the vulnerable, and ensure the survival of our people and their land.

The actions of criminals, taking advantage of regulatory gaps and the FOMO of investors, break the trust that is essential for a harmonious society. Influencers, who should be role models, instead lead everyday people into scams, exploiting their trust and naivety. This is a direct assault on the values of honesty and integrity that are the bedrock of strong families and communities.

The inconsistency of regulatory responses, as highlighted by Hank Huang, creates an environment where criminals thrive, and the vulnerable are left exposed. This is a failure of responsibility, a neglect of duty, and a clear contradiction of the principles that should guide our actions towards one another. It is a betrayal of the collective trust we place in our leaders and elders to protect and guide us.

The consequences of this unchecked behavior are dire. If crypto crimes continue to rise, families will be torn apart by financial ruin, children will grow up in an environment of fear and uncertainty, and elders will be left vulnerable to exploitation. The very fabric of our communities will be weakened, and the balance of life, so carefully maintained by our ancestors, will be disrupted.

The land, which has always been a source of sustenance and connection, will be further distanced from us as we become entangled in the web of crypto scams and losses. Our people will be divided, with some profiting from the misery of others, and the moral order that has guided us for generations will be shattered.

This is not the path our ancestors intended for us. It is a path of greed, selfishness, and disregard for the well-being of future generations. We must remember our duties to one another, to our families, and to the land that sustains us. Only then can we hope to restore the trust, responsibility, and strength that are the true foundations of a healthy community.

"This surge is linked to the rapid growth of new cryptocurrencies, especially memecoins, which have attracted many inexperienced investors."

This sentence uses a passive voice construction to avoid directly blaming anyone for the surge in crypto crimes. It suggests that the crimes are a result of the "growth" and "attraction" of cryptocurrencies, rather than highlighting the actions of criminals or the vulnerabilities of investors. This passive language can downplay the role of intentional criminal activity and shift focus away from those responsible. By using "linked to" and "have attracted," the sentence implies a natural, almost inevitable connection between crypto growth and crime, potentially minimizing the culpability of those involved.

The text evokes a range of emotions, primarily centered around concern and a sense of urgency regarding the rise in crypto-related crimes. These emotions are expressed through the use of strong language and descriptive phrases.

The opening sentence sets the tone, highlighting a "notable increase" in crypto crimes, which immediately grabs the reader's attention and signals a problem. The word "notable" implies a significant and concerning rise, creating an initial sense of worry. As the paragraph progresses, the language becomes more intense, with words like "unprecedented," "surge," and "vulnerable" emphasizing the severity of the issue. The mention of "mistakes" and "dubious intentions" further adds to the sense of unease, suggesting that criminals are taking advantage of a vulnerable situation.

The emotion of fear is a dominant thread throughout the text. The fear of missing out (FOMO) is cited as a contributing factor to the rise in crypto crimes, indicating that investors' fear of being left behind drives them into potentially dangerous situations. This fear is then reflected in the actions of criminals, who exploit the market's lack of regulation and the naivety of investors. The mention of "bad actors" and "scams" also evokes a sense of fear and distrust, as it suggests that malicious individuals are preying on unsuspecting victims.

The text also conveys a sense of frustration and criticism towards regulatory bodies. Hank Huang's comments highlight a lack of consistency in their approach, which has inadvertently created an environment conducive to criminal activity. This criticism adds an element of anger and disappointment, as it suggests that the very institutions meant to protect investors are, in fact, contributing to the problem.

These emotions are used to guide the reader's reaction by creating a sense of empathy and concern for the victims of crypto crimes. The text aims to build trust with the reader by presenting expert opinions and highlighting the complex nature of the issue. By expressing frustration and criticism towards regulatory bodies, the writer also aims to shift some of the blame away from individual investors, who are often portrayed as the vulnerable party in such scams.

To persuade the reader, the writer employs several rhetorical devices. One notable technique is the use of repetition, with words like "losses" and "crimes" appearing multiple times throughout the text. This repetition emphasizes the scale and severity of the issue, driving home the message that crypto-related crimes are a significant and growing problem. The writer also employs a personal touch by including quotes from experts, such as Bill Callahan and Natalie Newson, which adds credibility and a human element to the argument.

By carefully choosing emotional language and employing persuasive techniques, the writer aims to steer the reader's attention towards the urgency of the situation and the need for action. The text effectively conveys a sense of concern and urgency, leaving the reader with a clear understanding of the problem and a desire to see it addressed.