Crypto Crime Supercycle Very Real ZachXBT Says

Memecoins promoted by political figures like Donald Trump, lax regulations, and crypto court cases abandoned by US regulators have kicked off a crypto “crime supercycle,” say a pair of blockchain crime investigators. 

Blockchain investigator ZachXBT posted to X on Thursday that crypto has historically been ripe for abuse, but that has “noticeably increased since politicians launched memecoins and numerous court cases were dropped, further enabling the behavior.”

He claimed crypto influencers and key thought leaders face “zero repercussions” for scamming their followers. 

“That said, there’s never been a worse time to be doing black hat, phishing, social engineering, robberies, vs. gray hat activity when the current environment is favorable,” ZachXBT added. 

Slow regulation plays a factor

A lack of regulation, failing to clamp down on projects that didn’t disclose paid ads and other similar behavior have also contributed to the so-called supercycle, according to ZachXBT. 

“If they had spent time regulating it instead of going after open source developers or blue chip decentralized protocols, it’s only prevalent because there’s never really been repercussions,” he said.