Crypto scams are growing at a pandemic level, and Bubblemaps thinks today’s security techniques are largely useless. Two recent incidents illustrate how evolving criminals are dominating the competition.
Moreover, he didn’t identify any clear solution to fix this ongoing crisis. At the moment, it’s enough to acknowledge that we need some radical changes.
Two Illustrative Crypto Scams
“Crime is legal now” is a popular saying in today’s crypto scam supercycle, but the sleuths might be running out of steam. We often take it for granted that cybersecurity experts track ongoing crimes, often for little reward, but the scammers seem to be winning. Bubblemaps addressed some growing concerns in a social media post:
Specifically, he pointed to two recent incidents that neatly tie many trends together. Both these crypto scams happened in the last week, earned millions of dollars, and illustrated the crimefighters’ failures. The YZY meme coin snipe had problems at both ends.
For one thing, retail investors went crazy for it, even though the very first buyer was a notorious rug puller. Even when cybersecurity experts loudly warn that some project is a scam, crypto traders don’t care. They’re either totally ignorant of these voices or trying to sell before the rug pull.
On the other end, Hayden Davis’ $12 million involvement shows how powerless law enforcement can be. Right after a US Judge unfroze his assets regarding a different crypto scam, Davis snipped Kanye West’s YZY token.
This sector moves very fast, and regulators are often too slow to punish every bad actor. Visible failures only contribute to a culture of impunity. Moreover, this incident only concerns the US. Bubblemaps claimed that cross-border crypto criminals make this problem substantially worse.
Bubblemaps noted another crypto scam involving a fake meme coin. On-chain experts like ZachXBT have spent weeks complaining about worrying trends: CEXs and stablecoin issuers are slow or even unwilling to support community crime prevention efforts.
Executives from Zora and Coinbase promoted a fake token this week, revealing systemic failures.
The Criminals Are Winning
Together, these bad trends led Bubblemaps to conclude that crypto scam prevention is essentially useless in its current form. Whether you look at social engineering, fake apps, or powerful hacker teams, we can all agree that criminals are improving. To be blunt, crimefighters aren’t.
Bubblemaps didn’t name any specific solutions for these vast problems, but they’re dire. Sure, there are probably a few methods to use blockchain’s trustless and decentralized nature to address this problem. Will they have any community buy-in, though? How can anyone stop retail investors from falling for one crime after another?
In 2025, the crypto industry made historic progress in terms of mainstream and institutional adoption. Yet this pandemic-level rise of scams could damage the industry’s credibility and create more barriers for newcomers in the long term.
The post One Sleuth Sounds The Alarm: Crypto Scam Prevention Isn’t Working appeared first on BeInCrypto.
Source: https://beincrypto.com/crypto-scam-security-prevention-proven-useless/
