US, China, and UK Lead in Launches of Scam and Failed Crypto Projects, Report Finds

A new report reveals that the United States, China, and the United Kingdom are the leading sources of scams and failed cryptocurrency projects, with American founders responsible for the majority of fraudulent ventures. The study, conducted by 5Money and Storible, analyzed over 1,500 crypto projects launched between January 2022 and October 2024.

The findings indicate that the U.S. is at the forefront, accounting for 43% of all scam projects during this period. This high percentage is linked to both the large volume of crypto projects launched in the U.S. and notable high-profile collapses such as the infamous FTX crash in 2022. China and the UK follow, with 8% and 7% of scams originating in these countries, respectively.

In terms of failed projects, the U.S. again leads the charge, with 33% of all such ventures. China ranks second with 7.63%, followed closely by the UK at 7.22%. South Korea and Singapore also report high failure rates, each with more than 6% of their crypto projects failing.

The study also highlighted countries with the highest proportion of scams relative to total projects launched. Russia topped the list, with 24% of its crypto projects turning out to be scams. Switzerland followed at 22%, and China ranked third with 20%. Vietnam also made the top ten, with 12% of projects flagged as fraudulent.

South Korea stood out for having the highest failure rate, with 59% of its crypto projects ending in failure. Singapore was not far behind at 54%, and more than half of the crypto projects in the UK were classified as dead. Other countries like Canada and the Netherlands also reported significant failure rates, each at 50%, while Vietnam saw 42% of its projects fail.

The report emphasizes the need for stronger global regulations to tackle the rising number of scams and failed projects in the crypto space. In response to these challenges, regulators in various regions have started to tighten their grip on the industry. In the UK, the Financial Conduct Authority (FCA) plans to finalize crypto regulations by 2026, while Singapore and South Korea have already implemented strict consumer protection measures.

This report aligns with a similar study by AlphaQuest, which revealed that over 70% of crypto projects launched during the 2020-2021 bull run were dead by early 2024. Many of these projects were affected by a lack of liquidity and the fallout from events like the FTX collapse.

As the crypto industry continues to evolve, the need for robust regulations to protect investors and ensure the stability of the market has never been clearer.