Cryptocurrency scams are increasing at a pandemic level, and Bubblemaps believes that current security techniques are largely ineffective. Two recent incidents illustrate how sophisticated criminals dominate the competition.
Moreover, no clear solution has been identified to address this ongoing crisis. For now, it is enough to acknowledge that we need some radical changes.
Two illustrative scams in cryptocurrencies
"Crime is now legal" is a common saying in today's super fraud cycle in cryptocurrencies, but investigators may be running out of time. We often consider cybersecurity experts tracking ongoing crimes, often for little reward, but the scammers seem to be winning. Bubblemaps addressed some of the growing concerns in a social media post:
She said, "Last week truly revealed the failures of our industry. Despite our collective efforts as investigators, builders, and communities - the same names continue to execute the same scams. It happens in public, and no one stops it."
He specifically referred to two recent incidents that neatly tie together several trends. Both cryptocurrency scams occurred last week, made millions, and showed failures in crime prevention. The YZY meme coin had issues on both sides.
On one hand, individual investors went crazy over it, even though the first buyer was known for pulling the rug. Even when cybersecurity experts loudly warn that some projects are scams, cryptocurrency traders do not care. They are either completely ignorant of these warnings or trying to sell before the rug is pulled.
On the other hand, Hayden Davis's $12 million involvement shows how weak law enforcement is. Immediately after an American judge lifted the freeze on his assets related to various cryptocurrency frauds, Davis snagged Kanye West's YZY token.
This sector is moving very fast, and often regulators are too slow to punish every bad actor. The obvious failures only contribute to a culture of impunity. Furthermore, this incident pertains only to the United States. Bubblemaps claimed that cross-border criminals in cryptocurrencies make this problem much worse.
Bubblemaps pointed out another cryptocurrency scam related to a fake meme coin. Chain experts like ZachXBT spent weeks complaining about troubling trends: CEXs and stablecoin employees are slow or even unwilling to support community efforts to prevent crime.
Executives from Zora and Coinbase promoted a fake token this week, revealing systemic failures.
Criminals are winning
These bad trends together led Bubblemaps to conclude that preventing fraud in cryptocurrencies is futile in its current form. Whether you look at social engineering, fake applications, or powerful hacker teams, we can all agree that criminals are getting better. Frankly, crime fighters are not.
He said, "This broken environment leads to one thing: theft becomes more efficient, crimes go unpunished, and victims lose hope. This space was built on independence and self-regulation, so we must set our own rules and adhere to higher standards. Until fraud has real consequences and the sector works together, this cycle will continue to repeat."
Bubblemaps did not mention any specific solutions to these significant problems, but they are serious. Certainly, there may be some ways to leverage the trustless and decentralized nature of blockchain to address this issue. But will there be any support from the community? How can anyone prevent individual investors from falling into one crime after another?
In 2025, the cryptocurrency industry made historic progress in terms of public and institutional adoption. However, this rise in the level of pandemic fraud could damage the credibility of the industry and create more barriers for newcomers in the long term.