Rising Crypto-Related Scams and Bitcoin's Increased Use in Illegal Transactions

By: Isha Das

Bitcoin and other digital currencies increasingly find themselves at the center of financial misconducts across the globe. With a sharp rise observed in the participation of cryptocurrencies in pyramid schemes and illegal activities, authorities express rising concerns.

In 2023, the Central Bank of Russia reported a substantial increase in financial scams and pyramid schemes, totaling to 5,735 and 2,944 respectively. The authorities noted that most of these activities were tied closely with cryptocurrencies, further adding to the industry's notoriety.

In a similar fashion, a report by the U.S. Department of the Treasury highlighted Bitcoin's dominant role in human trafficking and child exploitation. The report illustrates how Bitcoin has become a popular medium for illicit transactions supporting global smuggling and exploitation businesses.