Introduction to Cryptocurrency and Digital Asset Fraud

This chapter provides an introduction to the subject of cryptocurrency and digital asset fraud. It begins by providing an overview of statistics showing trends in cryptocurrency-related crimes. Next, we discuss the effect of the COVID-19 pandemic on digital asset fraud trends. We then discuss the backdrop of cryptocurrency bankruptcies and turmoil that laid the groundwork for the FTX fraud. Cases included in this discussion include Voyager Digital, Terra (LUNA), and Celsius. The chapter concludes with an analysis of the follow-on effects of the FTX fraud throughout the cryptocurrency industry.