Experts warn: Q1 2025 encryption losses exceed $2 billion. Lack of regulation may lead to a worsening "criminal Supercycle."

RektRecovery · 2025-06-20T09:40:32+00:00

Blockchain experts point out that the promotion of memes and regulatory relaxation by U.S. politicians has intensified encryption crimes, with losses exceeding $2 billion in the first quarter of 2025 due to hackers and fraud. Experts warn that if effective regulation is lacking, criminal activities will continue to deteriorate.

RektRecovery

2025-06-20 09:40:32

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On June 20, blockchain security experts ZachXBT and Taylor Monahan pointed out that the promotion of meme coins by U.S. politicians and the abandonment of some crypto lawsuits by regulators have fueled crypto criminal activities. Data shows that in the first quarter of 2025, losses due to hacking, phishing scams, and runaway scams exceeded $2 billion. ZachXBT criticized the lack of focus in the regulatory direction and the failure to effectively crack down on the undisclosed behavior of paid promotion. Monahan believes that crime is currently extremely costly and lucrative, leading to a constant influx of hackers and scammers into the space. Experts warn that this “crime supercycle” could continue to worsen in the absence of effective regulatory measures.

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