According to a new report by TRM, more money was lost to cryptocurrency Ponzi schemes and scams throughout 2022 than to hacks and exploits. In the past year, crypto investors were scammed through various Ponzi schemes to the tune of at least $7.8 billion. In total, the intelligence company reported about victims lost about $9.04 billion to various fraud schemes in 2022.
Crypto Ponzi Schemes: A Rising Threat
Pyramid and Ponzi schemes are fraudulent investment schemes that rely on the constant recruitment of new investors or investments to generate returns for earlier investors. Crypto Ponzi schemes have been on the rise in recent years, and they’re costing investors millions. The scams are getting more sophisticated, targeting novice and experienced crypto investors alike.
Of all blockchains, TRON was mostly used by these schemes. Almost 40 percent of the entire $7.8 billion that was fraudulently obtained through investment scams operating in 2022 was on the TRON blockchain, much of i
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