US Politicians May Have Fueled The Ongoing Crypto Scam, Theft Supercycle Zach XBT Says

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Key Insights:

  • ZachXBT warns of a crypto “crime supercycle” fueled by political hype, weak regulation, and rogue influencers.
  • The rise of meme coins and their endorsement from politicians is a major catalyst for these scams and pump-and-dump schemes.
  • The rise in dismissed cases against crypto fraudsters hinders progress toward accountability.

In a world where the only thing more volatile than the crypto market is the average politician’s opinion, our dear friend ZachXBT has decided to sound the alarm. Apparently, we are in the midst of a “crime supercycle” that makes a rollercoaster look like a kiddie ride. 🎢

Hacks, scams, thefts, and even the occasional outright wrench attack (yes, you read that right) have taken over the crypto space this year. It’s like a circus, but with fewer clowns and more digital wallets. The combination of political hype, sluggish regulation, and influencers behaving like they’ve just discovered a new flavor of ice cream is fueling this wave of criminal activity. 🍦

And if you thought it couldn’t get worse, think again! This year alone, hackers have pilfered over $2.1 billion from crypto platforms and users. That’s billion with a “B,” folks! Through phishing scams, rug pulls, and other laundering operations, it’s like a heist movie, but without the charming lead actor. 🎬

Now, let’s dive into the details of the alarms being sounded by influencers like ZachXBT and Taylor Monahan, who are basically the crypto version of the town crier. 🥳

Meme Coins and Political Endorsements: The Tipping Point

According to our crypto oracle, ZachXBT, one of the biggest catalysts for this ongoing crime wave is the rise of meme coins. Yes, those delightful little tokens that politicians are launching or endorsing, like Donald Trump and Javier Milei, are causing quite the ruckus. Who knew that a coin named after a dog could lead to such chaos? 🐶

These coins, often hyped through social media like the latest TikTok dance craze, have become a massive source of speculative capital. It’s like a game of musical chairs, but everyone is trying to sit on a pile of money. 💰

The crime supercycle is indeed very real.

While it’s true the industry has historically been ripe for abuse, it has noticeably increased since politicians launched meme coins and numerous court cases were dropped, further enabling the behavior.

Laundering groups and small OTC…

— ZachXBT (@zachxbt)

When you mix so little oversight with a dash of political endorsement, you get a recipe for disaster. ZachXBT argues that politicians are lending legitimacy to meme coins, which has normalized risky and even fraudulent behavior. It’s like giving a toddler a chainsaw and saying, “Go have fun!” 🔪

These moves have empowered a new generation of bad actors who use hype-driven tokens as vehicles for pump-and-dump schemes. They launch everything from fake presales to outright scams, all while regulators are busy looking the other way, probably trying to figure out how to use their smartphones. 📱

“Since politicians launched meme coins and several court cases were dropped, criminal behavior has increased dramatically,” Zach XBT posted on X. “There’s never really been repercussions, so people feel free to exploit.”

Court Case Dismissals Undermine Accountability

Another delightful aspect of this problem is the increase in the number of dropped legal cases involving crypto-related fraud and misconduct. It’s like a game of dodgeball, but the balls are made of money and the players are all criminals. 🏐

Zach XBT pointed out that courts often side with exploiters, especially when legal systems fail to fully understand what smart contracts and decentralized systems are. This lack of clear rules tends to make criminals more brazen, and influencers who promote scam tokens rarely face consequences, even when they fail to disclose paid endorsements. It’s like a free-for-all, but with more lawyers. ⚖️

“Government agencies could’ve easily made $50–$100 million by fining influencers and projects who never disclosed paid ads,” ZachXBT wrote. “But instead, they went after open-source developers and legit protocols.”

Scams Are Getting Bigger, Bolder and Harder to Trace

Despite the transparent nature of blockchain technology, scammers are becoming more effective at covering their tracks. It’s like watching a magician pull a rabbit out of a hat, except the rabbit is your money and the hat is a blockchain. 🐇

According to ZachXBT, money laundering groups have gained the upper hand. For example, North Korea’s Lazarus Group, which is known for targeting crypto platforms, has allegedly laundered funds from several major hacks on exchanges like Bybit, DMM Bitcoin, and WazirX. It’s like a game of whack-a-mole, but the moles are all wearing ski masks. 🎭

I don’t see why things would change unless those who create new value (grow the pie) are rewarded more than those who extract value/move value in pointless circles.

The current incentives are driven primarily by the lack of risk around hacking/stealing/scamming/extracting. No…

— Tay (@tayvano_)

ZachXBT estimates that the “Black U” market on the Tron blockchain is worth between $5 billion and $10 billion. That’s a lot of zeros, folks! 💸

Interestingly, much of it remains invisible to law enforcement and forensic analysts. While on-chain transparency helps track certain activities, the decentralized and borderless nature of crypto still makes it a perfect medium for money laundering and cross-border cybercrime. It’s like trying to catch smoke with your bare hands. ☁️

So far this year, the numbers show that the problem is only getting worse. According to cybersecurity firm Certik, over $2.1 billion has been lost to hacks and scams in 2025 alone. In May, there were 20 major hacks, which resulted in a combined $244.1 million in stolen assets. Although this was a drop from April, the damage is still a real and massive one. 📉

Additional data from Hacken’s April report shows $96 million lost to phishing scams and over $300 million to rug pulls in Q1 of this year. And it’s not just anonymous hackers behind these schemes. Increasingly, scams are being planned and executed by individuals or teams with visible public profiles. It’s like watching a reality show, but with more drama and fewer happy endings. 📺

Everyone, including influencers, YouTubers, and even developers with past ties to legitimate projects, are becoming bolder, and the scams will only get worse until reforms are introduced. So, buckle up, folks! It’s going to be a bumpy ride! 🎢

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2025-06-20 21:18