Whirlwind Year Sees UK Crypto Fraud Losses Exceeding £300M

Whirlwind Year Sees UK Crypto Fraud Losses Exceeding £300M

The U.K. experiences a 40% increase in losses from crypto fraud totaling over £300 million ($370 million) due to an upsurge in crypto scams and the FTX fiasco, highlighting the need for standardized crypto regulations and the cautionary approach of the U.K. government towards crypto asset regulation.

The losses from cryptocurrency fraud in the United Kingdom have increased by greater than 40 percent in the a year ago, reports by Britain’s fraud reporting agency.

Reports by figures from Action Fraud, the losses have surpassed £300 Million ($370 million). This is reportedly owing to an upsurge in cryptocurrency scams and numerous bankruptcies brought on by the FTX Trading Ltd fiasco.

Millions Lost in Cryptocurrency Scams

In the 12 months until March 2023, cryptocurrency fraud losses were $370 Million. Reports by data analysis by the law company RPC, this is an upsurge from about $250 Million the year prior. Greater than a third of the overall losses took place in November 2022, when the exchange filed for bankruptcy. It’s worth noting that, the fall of FTX Trading Ltd significantly contributed to these losses.

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Jennifer Craven, a fraud expert at law company Pinsent Masons, informed the paper that the figures underscore the prevalence of cryptocurrency crime.

The figures likewise highlight the dire need for a standardized cryptocurrency framework for worldwide investors. In February, the United Kingdom Treasury drafted recommendations proposing new cryptocurrency investment regulations. In the meantime, the United Kingdom House of Commons Committee proposed that trading and financing in unbacked cryptocurrency assets resembles gambling in a report dated May 17.

United Kingdom Cryptocurrency and Finance Regulations Take Priority

Plenty of of the U.K.’s conventional financial (TradFi) institutions have cautioned the Government about potential hazards in cryptocurrency regulation. This comes when the United Kingdom plans to implement specific cryptocurrency legislation within the following 12 months. As already  stated by BeInCrypto, a lot of these institutions have cautioned the Government about the hazards associated with digital currencies regarding accuracy, taxation, and consumer safety. They have likewise warned the Government that regulating digital currencies could result in consumers having a false feeling of trust.

In general, the United Kingdom Government is cautiously approaching cryptocurrency investment regulation. They seek to facilitate industrial innovation while safeguarding consumers from related dangers. The national fraud strategy of the United Kingdom Government recently forbade cold calling in the region concerning financial and financing items.

Meanwhile,  the United States Attorney’s Office could be starting a civil forfeiture case for cryptocurrency-related fraud cases. In a statement, the Government indicated that it sought to forfeit the cryptocurrency taken from 7 accounts at Binance Crypto exchange, creating a precedent for handling digital currencies in fraud cases.


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