$7.8B LOST IN CRYPTO PONZI AND PYRAMID SCHEMES IN 2022: REPORT

Last updated: June 19, 2025, 22:49 | Written by: Elizabeth Stark

The cryptocurrency world, while brimming with innovation and potential, isn't immune to the darker corners of financial fraud.In 2025 alone, a staggering $7.8 billion was siphoned away from investors through elaborate crypto Ponzi and pyramid schemes.This eye-watering figure, highlighted in a recent report by blockchain intelligence firm TRM Labs, serves as a stark reminder of the risks lurking within the digital asset landscape. $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report. JImagine the collective disappointment and financial devastation caused by these deceptive schemes.It underscores the urgent need for increased awareness, robust regulations, and sophisticated tools to combat illicit activities. See full list on dailycoin.comThis wasn't an isolated incident; illicit activities in the crypto sector increased despite an overall market downturn, illustrating that fraudsters were becoming more brazen and innovative in their approaches.From the allure of quick riches to complex structures that masked the underlying deception, these schemes left a trail of broken dreams and empty wallets.In this article, we delve into the details of this report, exploring the types of schemes, the blockchains they favored, and, most importantly, how you can protect yourself from becoming the next victim.

The Shocking Scale of Crypto Fraud in 2025

The TRM Labs report paints a concerning picture of the crypto crime landscape in 2025. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, another $1.5 billion in crypto was alleged by TRM to have been spent on darknets for illicit activitiesThe headline figure of $7.8 billion lost to Ponzi and pyramid schemes only scratches the surface. Illicit activities related to crypto increased across the sector in 2025 despite an overall market downturn. According to a report $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report - XBT.MarketWhen factoring in other scams, such as romance frauds and phishing attacks, the total loss to the crypto community balloons to over $9 billion. The Illicit Crypto Ecosystem Report published by blockchain intelligence firm TRM Labs revealed that in 2025 up to $7.8 billion was lost through cryptocurrency pyramid and Ponzi schemes. This is in addition to the $1.5 billion allegedly spent on darknets for illicit activities and another $3.7 billion in cryptocurrency lost in hacks orThese numbers highlight the sheer scale of the problem and the sophistication of the criminals involved.They also point to a need for greater regulatory oversight and investor education within the crypto space. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and PonziIt is important to note that the illicit activity isn't limited to just Ponzi schemes; TRM Labs data shows that at least another $5.2 billion was allegedly used in darknet activities or lost due to hacks, exploits, and other crimes.

Let’s break down the key findings of the TRM Labs report:

$7.8 billion lost to Ponzi and pyramid schemes: This is the most significant figure, representing the dominance of these schemes in the crypto crime landscape.
$1.5 billion spent on darknets: This indicates the use of cryptocurrency for illegal activities such as drug trafficking, weapons sales, and money laundering.
$3.7 billion lost in hacks and exploits: This highlights the vulnerabilities in crypto exchanges, wallets, and smart contracts, which are often exploited by hackers.

Ponzi vs.Pyramid Schemes: Understanding the Difference

Although often used interchangeably, Ponzi and pyramid schemes operate with slightly different mechanics, both leading to similar devastating outcomes.Understanding the nuances can help you identify these scams more effectively.

Ponzi Schemes

A Ponzi scheme, named after Charles Ponzi, is a fraudulent investment operation where returns are paid to earlier investors using money from new investors, rather than from legitimate profit earned through investments. Cryptocurrency enthusiasts suffered a hefty blow in 2025 as a pyramid and Ponzi schemes worldwide saw a collective sum of $7.8 billion in losses. The stunning figure was part of a report released on June 28th by the blockchain intelligence agency TRM Labs.The scheme relies on a constant influx of new money to sustain itself. by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, another $1.5 billion in crypto was alleged by TRM to have been spent on darknets for illicit activities, while another $3.7 billion in crypto was lost in hacks or exploits.Here’s how it typically works:

The operator promises high returns with little or no risk.
Early investors are paid with money collected from new investors.
This creates the illusion of a successful investment, attracting more people.
The scheme collapses when there aren't enough new investors to pay the existing ones, leaving most people with substantial losses.

Pyramid Schemes

A pyramid scheme, on the other hand, relies on recruiting new members, who pay upfront fees for the right to recruit others.Profit is generated primarily from these recruitment fees, rather than from the sale of legitimate products or services.Here's what characterizes a pyramid scheme:

Participants are encouraged to recruit new members into the scheme.
Recruitment fees are the primary source of income.
Little or no actual product or service is sold.
The scheme eventually collapses when it becomes impossible to recruit enough new members to sustain the pyramid.

While distinct, both types of schemes share a common thread: they are unsustainable and ultimately benefit only a small group of individuals at the expense of the majority.

The Rise of Crypto Ponzi Schemes: Why 2025 Was a Banner Year for Fraudsters

Several factors contributed to the surge in crypto Ponzi and pyramid schemes in 2025. $7.8B lost in crypto ponzi and pyramid schemes in 2025: Report Illicit activities related to crypto increased across the sector in 2025 despite an overall market. Texas Senate Committee Hears Testimony On Bill That Would Ban Certain Energy Arrangements With.These included:

Market Volatility: The inherent volatility of the crypto market creates an environment of uncertainty, making investors more susceptible to promises of guaranteed high returns.
Lack of Regulation: The relatively unregulated nature of the crypto space makes it easier for fraudsters to operate without fear of immediate consequences.
Complexity of Crypto: The technical jargon and complexities of blockchain technology can be confusing for newcomers, making them vulnerable to scams.
Social Media Influence: Social media platforms are often used to promote these schemes, with influencers and paid promoters creating hype and attracting unsuspecting investors.
Greed and FOMO (Fear of Missing Out): The allure of quick riches and the fear of missing out on the next big thing can cloud judgment and lead people to invest in dubious projects.

Which Blockchains Were Most Affected?

The TRM Labs report also sheds light on the blockchains favored by these schemes. $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report AnChain.AI's 2025 Web3 Annual Risk Report: TRM data reveals at least USD 7.8 billion paid into Ponzi or pyramid schemes, USDInterestingly, a significant portion of the illicit activity was concentrated on a specific blockchain.

According to the report, approximately 40% of the total incoming volume of investment fraud schemes active in 2025 was on Tron, primarily via Tether (USDT) issued on the blockchain. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report - Bitcoin Market News TodayThis is a significant increase from just 17% in 2024.This suggests that fraudsters were increasingly leveraging Tron due to its features and potential for anonymity.

Why Tron? In a report published on June 28 by TRM Labs, a prominent blockchain intelligence firm, an astonishing $7.8 billion was paid out to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. The report also suggests that an additional $1.5 billion worth of cryptocurrency was used for illicit activities on darknets, while approximately $3.7Possible reasons include:

Low Transaction Fees: Tron offers relatively low transaction fees, making it cost-effective for moving large sums of money.
Fast Transaction Speeds: Tron boasts fast transaction speeds, allowing for quick transfers and withdrawals.
Perceived Anonymity: While not entirely anonymous, Tron's structure can make it more challenging to trace transactions compared to some other blockchains.

Examples of Crypto Ponzi and Pyramid Schemes in 2025

While the TRM Labs report doesn’t explicitly name specific schemes, it mentions that the 10 largest crypto Ponzi and pyramid schemes accounted for around 54% of the total amount lost.This highlights the concentration of losses in a few large-scale operations.Although we can't name specific examples from 2025 due to data limitations, we can illustrate the potential structure of such scams with hypothetical examples inspired by past schemes.

Hypothetical Example 1: ""CryptoYieldMax"" (Ponzi Scheme)

CryptoYieldMax promises investors a guaranteed 2% daily return on their crypto investments.The company claims to generate these returns through a proprietary AI-powered trading bot that exploits market inefficiencies. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid $7.8B lost in crypto ponzi and pyramid schemes in 2025: ReportHowever, in reality, CryptoYieldMax pays earlier investors using funds from new investors. Illicit activities related to crypto increased across the sector in 2025 despite an overall market downturn. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, another $1.5 billion in crypto was alleged by TRM toAs more people join, the scheme becomes unsustainable, and eventually collapses, leaving most investors with nothing.

Hypothetical Example 2: ""MetaChain Recruit"" (Pyramid Scheme)

MetaChain Recruit is a platform that claims to be building the future of the metaverse.Participants are required to pay an upfront fee to join the platform and receive access to exclusive training and resources. tldr; According to a report by TRM Labs, $7.8 billion was lost to cryptocurrency pyramid and Ponzi schemes in 2025. Additionally, $1.5 billion was spent on darknets for illicit activities, and $3.7 billion was lost in hacks or exploits.However, the primary focus is on recruiting new members.Participants earn commissions for each new person they bring into the scheme. About $7.8 billion were lost to pyramid schemes and similar Ponzi platforms in 2025. If other scams such as romance frauds and phishing attacks are taken into calculation, the crypto community lost over $9 billion in 2025 alone.The platform offers little or no actual value in terms of metaverse development, and the scheme eventually collapses when it becomes impossible to recruit enough new members.

These hypothetical examples illustrate the deceptive tactics used by crypto Ponzi and pyramid schemes.They often combine the allure of high returns with complex explanations that mask the underlying fraud.

Protecting Yourself from Crypto Scams: Red Flags to Watch Out For

The best way to avoid becoming a victim of crypto Ponzi and pyramid schemes is to be vigilant and skeptical. According to a report published by blockchain intelligence firm TRM Labs on June 28, a Illicit activities are an obstacle that is holding back on blockchain adoption Illicit activities related to crypto increased across the sector in 2025 despite an overall market downturn.Here are some red flags to watch out for:

Guaranteed High Returns: Any investment that promises guaranteed high returns with little or no risk is a major red flag. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, anotheLegitimate investments always carry some level of risk.
Unrealistic Returns: Be wary of returns that seem too good to be true.If it sounds too good to be true, it probably is.
Complex or Unclear Business Model: If the business model is difficult to understand or lacks transparency, it's likely a scam.
Pressure to Recruit: If you are pressured to recruit new members to earn money, it's a clear sign of a pyramid scheme.
Unlicensed or Unregistered Companies: Check if the company is licensed and registered with the appropriate regulatory authorities.
Anonymous or Difficult to Contact Operators: Be cautious of companies with anonymous founders or operators who are difficult to contact.
Use of Jargon and Technical Language: Scammers often use technical jargon to confuse and intimidate potential investors.
Limited Information Available: If there is limited information available about the company or its operations, it's a red flag.
Aggressive Marketing Tactics: Be wary of aggressive marketing tactics that create a sense of urgency or pressure you to invest quickly.

Actionable Advice: Steps You Can Take to Stay Safe

Beyond recognizing red flags, there are specific steps you can take to protect yourself from crypto scams:

Do Your Research: Before investing in any crypto project, conduct thorough research. Illicit activities related to crypto increased across the sector in 2025 despite an overall market downturn.Investigate the team, the technology, the business model, and the market.
Invest Only What You Can Afford to Lose: Never invest more money than you can afford to lose. Illicit activities related to crypto increased across the sector in 2025 despite an overall market downturn. According to a report published by blockchain intelligence firm TRM Labs onCrypto investments are highly volatile, and you could lose your entire investment.
Diversify Your Portfolio: Don't put all your eggs in one basket. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, another $1.5 billion in crypto was alleged by TRM to have been spent on darknets for illicit activities, while another $3.7 billion in crypto was lostDiversify your crypto portfolio across different assets to reduce risk.
Use Secure Wallets: Store your crypto in secure wallets, such as hardware wallets, to protect your funds from hackers.
Enable Two-Factor Authentication (2FA): Enable 2FA on all your crypto accounts to add an extra layer of security.
Be Wary of Social Media Hype: Don't fall for hype on social media.Do your own research and make informed decisions.
Consult with a Financial Advisor: If you're unsure about investing in crypto, consult with a qualified financial advisor.
Report Suspicious Activity: If you suspect a scam, report it to the appropriate authorities.
Stay Updated: Stay informed about the latest crypto scams and security threats by following reputable news sources and security blogs.

The Role of Regulation and Law Enforcement

Combating crypto Ponzi and pyramid schemes requires a multi-faceted approach involving regulation, law enforcement, and investor education.While the crypto space is still relatively unregulated, governments and regulatory bodies are increasingly paying attention.

Key areas of focus for regulation include:

Licensing and Registration: Requiring crypto exchanges and service providers to be licensed and registered.
Anti-Money Laundering (AML) Compliance: Implementing AML regulations to prevent the use of crypto for illicit activities.
Investor Protection: Establishing rules and guidelines to protect investors from fraud and manipulation.
Taxation: Clarifying the tax treatment of crypto assets.

Law enforcement agencies are also stepping up their efforts to investigate and prosecute crypto scams. $7.8B lost in crypto Ponzi and pyramid schemes in 2025: Report Crypto Ponzi Schemes in 2025 Cryptocurrency Ponzi and pyramid schemes have been around for years, but the potential for them to cause billions of dollars in losses in 2025 is more real than ever.Collaboration between agencies across different jurisdictions is crucial to effectively track down and bring perpetrators to justice. According to a report published by blockchain intelligence firm TRM Labs on June 28, a combined $7.8 billion was paid to cryptocurrency pyramid and Ponzi schemes worldwide in 2025. In addition, another $1.5 billion in crypto was alleged by TRM to haThis may include the ability to seize and auction digital assets associated with crimes.

The Future of Crypto Security: What Lies Ahead?

The fight against crypto scams is an ongoing battle.As technology evolves, so do the tactics of fraudsters. Ponzi schemes dominated the crypto crime landscape in 2025, with $7.8 billion funneled from victims, blockchain analytics firm said in a new report.However, there are also promising developments on the horizon.

Emerging technologies and strategies include:

Advanced Analytics: Using artificial intelligence and machine learning to detect suspicious transactions and identify potential scams.
Blockchain Forensics: Developing tools and techniques to trace the flow of funds on the blockchain and identify illicit actors.
Enhanced KYC/AML Procedures: Strengthening Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to prevent the onboarding of fraudulent accounts.
Smart Contract Audits: Conducting thorough audits of smart contracts to identify vulnerabilities and prevent exploits.
Decentralized Identity (DID): Using DID to create verifiable digital identities that can help prevent fraud and impersonation.

By combining these technological advancements with robust regulation and investor education, the crypto community can create a safer and more secure environment for everyone.

Conclusion: Staying Informed and Vigilant in the Crypto World

The $7.8 billion lost to crypto Ponzi and pyramid schemes in 2025 is a sobering reminder of the risks lurking within the digital asset space.While the potential rewards of crypto investing are significant, it's crucial to approach this market with caution and a healthy dose of skepticism.Remember the key takeaways: understand the difference between legitimate investment opportunities and fraudulent schemes, be wary of guaranteed high returns, and always do your own research. Researchers said that 10 of the largest crypto Ponzi and pyramid schemes accounted for around 54% of the total amount. Moreover, an alleged 40% of the total incoming volume of investment fraud schemes active in 2025 was on Tron, mostly via Tether ( USDT ) issued on the blockchain, compared to just 17% in 2025.The rise of illicit activities in 2025, despite market downturns, signals a need for even greater vigilance.By staying informed, recognizing red flags, and taking proactive steps to protect yourself, you can navigate the crypto landscape with confidence and avoid becoming the next victim.Don't let the promise of quick riches cloud your judgment; prioritize safety and security above all else.Consider this a call to action: share this information with your friends and family who are involved in crypto, and together, let's make the crypto community a safer place. $7.8B lost in crypto Ponzi and pyramid schemes in 2025: ReportBefore investing in anything, ask yourself: Does this make sense? An additional $5.2 billion in crypto was alleged used in darknet activities or was hacked.If you have any doubts, walk away.