01.06.2025

Scandals and Revelations in the Crypto Market: What Investors Need to Know

Introduction

The current uncertainty in the crypto market is exacerbated by numerous scandals and revelations. These developments underscore the importance for investors to stay informed about the security aspects of investments in cryptocurrencies.

Significant Scandals at a Glance

Coinbase Scandal

Blackmail and Data Abuse: Cybercriminals bribed support staff at Coinbase to steal customer data and carry out social engineering attacks. The perpetrators used the stolen data to deceive customers into sending cryptocurrencies to fraudulent addresses.

Extortion Attempt: The criminals extorted Coinbase for $20 million to cover up the act. Coinbase rejected the extortion and has advanced the investigations.

HAWK Coin Scandal

Price Manipulation: The HAWK Coin, a meme coin, was promoted by influencers, causing its market capitalization to temporarily reach nearly $500 million. However, the price quickly plummeted, and investors accused the developers of price manipulation.

Investigations: The SEC and the FBI have initiated investigations targeting the alleged initiators of the project. Influencer Hailey Welch was acquitted, as she had no knowledge of the business practices and fully cooperated with the authorities.

Builder.ai Scandal

Revenue Manipulation: Builder.ai, a no-code/low-code platform, is under U.S. investigation for inflated revenues and possible fraud. Internal investigations revealed that revenue projections were exaggerated by more than 300%.

Investigations: Investigators have raised doubts about the legitimacy of sales through resellers in the Middle East and could not confirm that these transactions actually occurred.

Conclusion

These scandals highlight the necessity for investors to always keep an eye on the security risks in the crypto market and to stay updated on current developments.