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ROCHESTER, N.Y. – With growing comfort with crypto, more consumers are jumping into the digital currency market. And the numbers are expected to grow as the Trump family’s crypto token began trading this week. However, experts say they’re expecting the number of scammers to grow as well.
President Donald Trump signed the Genius Act in July. He’s amassed his own crypto kingdom through the launch of the Trump family company, World Liberty Financial, with its now publicly traded stablecoin called USD1.
Bezalel Eithan Raviv, CEO of Lionsgate Network, a blockchain forensics firm, says they have investigated over 6,000 different crypto scam cases in 2024 alone.
“The Genius bill can be smarter,” Raviv said. “If you’re going to overlook security loopholes, we basically greenlight the next wave of scams.”
The law regulates stablecoins, cryptocurrency pegged to the U.S. dollar. So, as the name implies, stablecoins are more stable, lacking the volatility of other types of cryptocurrency.
Raviv warns people seeking the safety and regulation of stablecoins can be fooled by fake websites that look exactly like real crypto exchanges like Coinbase.
“The real platform you’ve engaged with is not Coinbase. It’s a phishing website mimicking Coinbase,” Raviv said.
He warns cryptocurrency is still fraught with fraud and we should proceed with caution.
“One out of three Americans are being targeted between the ages of 47 to 60,” Raviv said. “We want them to have that mentality to recognize the threat before they’ve sent the funds because recovery is not a walk in the park.”
While stablecoins are pegged to actual money, many digital currencies are not. For example, the president’s meme coin was selling at $75 in January. But as of this writing on August 3, it’s now valued at about $8.00, and many early investors lost their shirts.
Crypto can be extremely volatile and as with all investments, professional guidance is advised.
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