Additional Cases and Trends in Cryptocurrency Fraud

This chapter provides an overview of additional trends and additional case studies on cryptocurrency and digital asset fraud space. We discuss studies showing the growth in cross-chain crime. Next, we will discuss cryptocurrency crime against financial institutions. The chapter then discusses front-running bots, MEV bots and hacks, and a case of false hack rumors impacting token prices. We then cover the growth in state-sponsored crypto hacking groups such as North Korea’s Lazarus Group. Cases involving narcotics schemes using crypto on the Dark Web, Crypto mining investment fraud, liquidity mining, and cloud mining are discussed. The chapter concludes with a discussion of cryptocurrency ATMs and QR code payment scams and a case study of a religion-based affinity scheme involving cryptocurrency.