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US Regulator: Traders Reported Shedding Over $1 Billion in Crypto to Scams Since 2021 – Featured Bitcoin Information

The U.S. Federal Commerce Fee (FTC) has revealed that greater than 46,000 folks have reported shedding over $1 billion in cryptocurrency to scams for the reason that starting of final yr.

FTC Says Scammers Stole Over $1 Billion in Crypto

The U.S. Federal Commerce Fee printed a “Knowledge Highlight” report on crypto scams Friday. The FTC is the one federal company within the nation with each shopper safety and competitors jurisdiction in broad sectors of the financial system, the regulator’s web site describes.

Emma Fletcher, senior knowledge researcher on the FTC, wrote:

For the reason that begin of 2021, greater than 46,000 folks have reported shedding over $1 billion in crypto to scams – that’s about one out of each 4 {dollars} reported misplaced, greater than every other fee methodology.

Particularly, $680 million in cryptocurrency fraud losses had been reported in 2021. Within the first quarter of this yr, the losses as a result of crypto fraud amounted to $329 million.

The researcher added that the median particular person reported loss is $2,600, noting:

The highest cryptocurrencies folks stated they used to pay scammers had been bitcoin (70%), tether (10%), and ether (9%).

The regulator additional defined that just about half the individuals who reported shedding crypto to a rip-off since 2021 stated it began with “an advert, publish, or message on a social media platform.” The highest platforms reported by buyers had been Instagram (32%), Fb (26%), Whatsapp (9%), and Telegram (7%).

US Regulator: Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021
Prime frauds by reported crypto losses. Supply: FTC

As well as, of the reported crypto fraud losses that started on social media, most ($575 million) are funding scams, the FTC stated. Romance scams got here second, with $185 million in reported cryptocurrency losses since 2021

Folks ages 20 to 49 had been extra more likely to have reported shedding cryptocurrency to a scammer, with these of their 30s being hit the toughest, the regulator famous. Nonetheless, median particular person reported losses elevated with age, topping out at $11,708 for folks of their 70s.

Have you ever been scammed for cryptocurrency? Tell us within the feedback part under.

Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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