‘Buyer Beware’: Scammers and Trump’s Shared Ground
Former President Donald Trump, once skeptical of cryptocurrencies, has become an enthusiastic supporter, aligning himself with many in the tech world. This shift, however, has raised concerns, particularly regarding the potential for increased scam activity within the cryptocurrency market.
According to a March 26th article by Daria Solovieva in Salon, Trump’s move toward crypto deregulation comes as the number of scams is poised to rise. The article highlights the risks as Trump embraces a technology that is currently seeing a rise in fraudulent activity.
“Crypto investors lost at least $9.9 billion last year as a result of scams,” Solovieva reports, citing data from Chainalysis, a blockchain analysis firm. “That estimate is expected to rise as more illicit addresses associated with fraud are identified in the coming months.”
Eric Jardine of Chainalysis warns that as the use of cryptocurrencies increases, cybercriminals are expected to leverage AI technology to exploit consumers. “Adoption, a driver of total crypto activity, will undoubtedly grow this year. So even if the rate of scam activity were to remain constant, scam volumes would still increase year-on-year. I also expect that we will see volumes surge due to the growing professionalization of the ecosystem and the proliferation of AI technologies,” Jardine told Salon.
Terence Grugan, an attorney with Ballard Spahr in Philadelphia, also weighed in, urging caution for cryptocurrency users: “The expected absence of enforcement in the cryptocurrency market does not mean there are no legitimate issuers and products; it means the illegitimate ones may multiply and the maxim ‘buyer beware’ takes on greater importance.” He added, “As with any investment or any product with a fluctuating value, buyers and users should seek as much information as possible about the product before exchanging their own hard currency for crypto.”
This shift in Trump’s position and the potential for relaxed regulations have sparked a debate about investor protection and the future of the cryptocurrency market. Those involved and considering investment are therefore advised to exercise extreme caution.
