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FOMO, lax rules are fueling the crypto crime supercycle

2025-07-15 00:06:46

Main Idea

The lack of regulation, combined with hype and FOMO, is driving a crypto crime 'supercycle,' with record losses reported in the first half of 2025.

Key Points

1. Crypto crime losses in the first half of 2025 have already surpassed all of 2024, setting a new record.

2. Bill Callahan, a retired DEA agent, attributes the crime surge to lax regulations, hype, and FOMO, leading to theft, scams, and fraud.

3. CertiK's H1 Hack3d report states the average loss per security incident in 2025 is $4.3 million, with a median loss of $103,996.

4. Solidus Labs found that 98.7% of tokens on Pump.fun exhibit characteristics of rug pulls, highlighting the prevalence of fraudulent activities.

5. Hank Huang, CEO of Kronos Research, argues that regulators are not harsh enough, creating fertile ground for crypto crime, and calls for smarter, targeted regulation.

Description

Retired DEA agent Bill Callahan tells Cointelegraph that bad actors can make plenty of mistakes and still “make a handsome profit.”

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