Blockchain analyst ZachXBT warned of a growing crypto crime supercycle in 2025
He said the rise started after politicians launched meme coin scams and courts dismissed several key crypto-related cases.
In a post on X, ZachXBT wrote,
“The crime supercycle is indeed very real. It has noticeably increased since politicians launched meme coins and numerous court cases were dropped, further enabling the behavior.”
He pointed out that many protocols still collect fees, even though over 50% of their transactions involve stolen funds. ZachXBT said that unchecked criminal activity is becoming normal because of the lack of enforcement and legal action.
Meme Coin Scams and Court Dismissals Fuel Criminal Activity
ZachXBT explained that influencer scams are a major driver of current abuse. He said influencers and key opinion leaders often promote projects without revealing that they were paid. This violates rules in several countries, but no action has been taken.
He wrote,
“Government agencies could probably have made $50–100 million issuing fines to all of the influencers/projects who never disclosed paid ads over the years (is illegal in many jurisdictions but just never prosecuted).”
ZachXBT said enforcement agencies focused on open-source developers and decentralized platforms instead of tracking financial promotions. In some cases, court dismissals gave a free pass to those who exploited smart contracts, because existing laws do not apply well to blockchain systems.
He noted that this environment allows fraud to spread, since there are no real consequences for those involved.
Blockchain Transparency Makes Crime Traceable but Doesn’t Stop It
ZachXBT said that blockchain transparency makes it possible to trace crime, but bad actors still exploit the system. He highlighted that hackers and laundering groups use the open structure of crypto platforms to move large amounts of stolen money.
He said groups like the Lazarus Group laundered funds from major 2025 hacks, including Bybit, DMM Bitcoin, and WazirX. He added that these groups used small OTC brokers to move assets with little resistance.
ZachXBT estimated that the Tron Black U market is worth between $5 billion and $10 billion. He said most of the activity on Tron’s Black U is not traceable, even though it happens on public blockchains.
2025 Crypto Hacks Cause Billions in Losses
ZachXBT’s warning followed a series of 2025 crypto hacks. Data from PeckShield shows that in May 2025, hackers launched 20 major attacks, stealing $244.1 million. That marked a 39.29% drop compared to April, but criminal activity remained high.
Another report from CertiK stated that hackers stole more than $2.1 billion so far in 2025. Most losses came from wallet compromises, phishing schemes, and data leaks.
CertiK posted,
“The majority of losses have come from wallet compromises and phishing, with an increase in data leaks it’s important to remain vigilant.”
Earlier in June 2025, two large-scale hacks also caused $15 million in additional losses, according to previous data.
ZachXBT linked this increase in hacks to poor oversight and a system where meme coin scams, influencer scams, and court dismissals allow bad actors to continue operating without facing consequences.