A recent report sheds light on the growing sophistication of cryptocurrency scams, using the 2023 JPEX collapse in Hong Kong as a stark example. The JPEX exchange, backed by celebrity endorsements, promised “high, stable returns” on its JPC token before regulators intervened, revealing losses of over HKD 1.6 billion affecting more than 2,600 victims.
The report concludes that modern scams have become increasingly sophisticated, employing several key tactics:
- They use legitimate-looking open-source smart contracts and on-chain metrics to conceal their true intentions.
- Complex “yield farming” and “staking reward” structures are layered to secretly drain funds from unsuspecting investors.
- Viral growth is exploited through social media platforms like Telegram groups, WeChat channels, and influencer livestreams.
- AI-powered deepfakes are deployed to promote fraudulent schemes, as seen in a February 2025 hoax video featuring Tanzanian billionaire Mohammed Dewji promoting a bogus $Tanzania token, which netted scammers $1.48 million in a matter of hours.
These evolving tactics highlight the need for increased vigilance and due diligence in the cryptocurrency market.
