Crypto Hype and Chaos Feed a Growing Scam Wave

The average loss per incident climbed to $7.1 million, with pump-and-dump schemes and exit scams causing the most damage. Law enforcement agencies are also overwhelmed by legal complexities and limited resources, which allows sophisticated criminals to thrive. This was exemplified by the sudden disappearance of Abacus Market, the largest Bitcoin-based darknet marketplace, in what’s suspected to be a huge exit scam. The event happened after the seizure of Archetyp Market and led to chaos on the dark web. Experts warn that without smarter regulation and public education, crypto crime will only continue to escalate. Crypto Scammers Thrive Crypto crime surged to record levels in the first half of 2025, with losses surpassing previous highs that were set in 2022. Losses are even nearing the total for all of 2024. Total losses by year (Source: TRM Labs ) According to cybersecurity experts, a mix of slow regulatory response, fear of missing out (FOMO), and growing retail adoption is creating ideal conditions for scammers and cybercriminals to thrive. Former DEA agent and cryptocurrency investigator Bill Callahan pointed out that while he hesitates to call it a “supercycle,” the combination of hype, limited oversight, and rapid asset creation is very clearly empowering malicious actors. Criminals are capitalizing on the crypto market’s high-risk, high-reward dynamic, especially given the anonymity and ease with which scams can be launched. Callahan warned that these bad actors have more than enough resources and don’t need to succeed every time to turn a profit. Blockchain security firm CertiK reported in its H1 Hack3d report that the average loss per security incident this year reached $7.1 million, with a median loss of over $89,000. Senior blockchain investigator Natalie Newson from CertiK specifically pointed to a “convergence of conditions,” including token launches by influencers and key opinion leaders with questionable motives, as contributing to the surge in illicit activity. Solidus Labs also mentioned that close to 99% of tokens on Pump.fun showed signs of pump-and-dump schemes. Crime summary for H1 2025 (Source: CertiK ) To make things worse, law enforcement agencies are struggling to keep up. Cross-border legal complexities, resource constraints, and the growing sophistication of cybercriminals are making it extremely difficult to enforce the law effectively. Chainalysis previously flagged money laundering techniques as a major hurdle that complicates enforcement efforts and leaves legitimate users more vulnerable. Newson believes that while better smart contract security and public education could help, there is no silver bullet to stop criminal behavior completely. Meanwhile, Kronos Research CEO Hank Huang criticized what he sees as regulatory inconsistency. He argued that the pendulum has swung from aggressive overregulation to dangerous inaction, which is creating a climate of low accountability. Huang believes there is a need for “smart, targeted regulation” to both protect users and allow the crypto space to continue maturing. Despite a rise in enforcement actions, particularly against darknet markets, Huang warned that losses will never drop to zero. He explained that the decentralized and borderless nature of crypto markets will always attract a mix of honest participants and bad actors. The real solution, he said, lies in minimizing user risk rather than aiming for an unattainable zero-loss environment. Abacus Market Disappears in Suspected Exit Scam Despite the high crypto crime numbers from H1 of 2025, it is showing no signs of slowing down. Abacus Market, the largest Bitcoin-based Western darknet marketplace, recently went offline in what TRM Labs believes to be an exit scam. Post from TRM Labs The site and its infrastructure, including its clearnet mirror, have become completely inaccessible. According to TRM Labs, this sudden disappearance suggests the platform’s operators likely shut down operations and vanished with user funds. This happened after a period of heightened law enforcement activity and traffic spikes on the site. After the seizure of Archetyp Market in mid-June, which was one of the longest-running dark web marketplaces, users flocked to Abacus. This caused it to reach its highest-ever monthly sales volume of $6.3 million. But that growth may have painted a target on its back. Top DNMs’ incoming volume between 2021 and 2024 (Source: TRM Labs ) In late June, users began experiencing withdrawal delays, prompting reassurances from the Abacus administrator “Vito,” who blamed the issues on high traffic and DDoS attacks. Despite the explanation, the behavior looked very similar to classic exit scam tactics, and deposits fell sharply. Abacus was known for offering a variety of illicit drugs and supported both Bitcoin and Monero payments. While official figures estimate its lifetime Bitcoin sales at nearly $100 million, TRM Labs suggested the real volume, factoring in Monero transactions, could be closer to $300–$400 million. The market gained a lot of traction after the closures of competitors like ASAP Market and Incognito Market, and eventually commanded over 70% of the Western Bitcoin-based dark web marketplace share. TRM Labs speculates that the operators may have exited not only for profit but also to avoid law enforcement scrutiny, especially after Archetyp’s takedown. The firm explained that darknet administrators who either exit voluntarily or scam users—like those from Agora Market, ASAP Market, and Evolution Market—have often evaded capture entirely. There’s also speculation that Abacus may have been secretly seized by law enforcement, although no official announcement has been made. The administrator of the Dread dark web forum, who had close ties to Abacus, is especially doubtful over this theory. TRM Labs did, however, point out that in previous cases, official seizure notices sometimes appeared months after the site went dark. (Source: TRM Labs ) Whether Abacus’s disappearance was a strategic exit or a covert takedown, the fallout still disrupted the dark web ecosystem. It also seems like the cycle of migration, exploitation, and law enforcement pursuit will continue.

Source: Coinpaper