Crypto Fraudsters Made $30 Million Last Year off 'Pump and Dump' Schemes: Report
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Crypto may be a 21st-century phenomenon, but it seems like fraudsters are involving it in some age-old tricks to reap a profit.
Almost a quarter of new cryptocurrencies that were launched on Ethereum and BNB blockchains last year and evaluated in a new study had the hallmarks of artificially inflated assets. Blockchain analysis firm Chainalysis identified more than 9,000 tokens that appeared to have the features of a classic “pump and dump” scheme — a form of fraud in which holders of a tradable asset, like stocks or crypto, use misleading information to spike the cost of the asset before selling their stake.
Once the original owners dump their holdings, the value of that asset plummets, leaving the new buyers with an investment that's dramatically devalued or perhaps even worthless.
