The United States experienced a significant increase in investment fraud losses related to cryptocurrency in 2023, according to a recent report by the Federal Bureau of Investigation (FBI). The losses soared from $2.57 billion in 2022 to approximately $3.94 billion in 2023, marking a 53% surge.
To put it into perspective, the total amount lost in all types of investments in 2023 was $4.57 billion. This means that the losses incurred in crypto-related fraud accounted for around 86% of all investment fraud losses in the country.
The FBI highlighted that more and more individuals are falling victim to crypto scams due to the allure of substantial returns on their investments. One prevalent form of crypto scam is romance scams, where criminals assume fake online identities to gain the trust and affection of their victims. They then manipulate the victims into sending cryptocurrency, only to vanish afterwards.
In 2023, romance scams were responsible for at least $374 million in suspected stolen crypto, as reported by Chainalysis in December. Additionally, Cointelegraph reported that over 324,000 crypto users became victims of phishing scams in 2023, resulting in approximately $295 million in lost digital assets.
It’s important to note that the rise in individuals falling prey to crypto scams is not limited to the United States. Countries worldwide are also grappling with this issue. For instance, the Australian Competition and Consumer Commission (ACCC) reported in April 2023 that Australians lost 221.3 million Australian dollars ($146.9 million) through investment scams involving crypto as the payment method in 2022. This marked a staggering 162.4% increase from the previous year.
In other news, the owner of a valuable CryptoPunk Seedphrase, which possesses seven distinctive traits, has partnered with Sotheby’s, a renowned auction house specializing in art and collectibles. This partnership underscores the growing importance of non-fungible tokens (NFTs) as a valuable asset class.