The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has disclosed that Americans lost a staggering $5.6 billion to cryptocurrency-related fraud in 2023.

What Happened: This figure, released in the FBI’s 2023 Cryptocurrency Fraud Report, marks a 45% increase from the previous year, highlighting the growing sophistication of cybercriminals in the digital asset space.

The report details that while cryptocurrency-related complaints accounted for only 10% of all financial fraud reports, they represented nearly half of the total financial losses, highlighting the high-stakes nature of cryptocurrency scams.

Investment fraud emerged as the dominant form of cryptocurrency-related crime, accounting for 71% of all losses.

The FBI noted a particular increase in “confidence-enabled cryptocurrency investment fraud,” where criminals build trust with victims through dating apps, social media, or professional networking sites before introducing fraudulent investment opportunities.

Also Read: Metaplanet Acquires 38.6 Bitcoin for $2.2M, Expanding Total Holdings To 398.8 BTC

“Criminals exploit the decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the globe,” said Michael D. Nordwall, Assistant Director of the FBI’s Criminal Investigative Division. “This creates significant challenges in recovering stolen funds.”

The report also highlighted an alarming trend of labor trafficking connected to cryptocurrency scams, with individuals lured overseas by false job advertisements and forced to participate in fraudulent operations.

Interestingly, the age group reporting the highest losses was those over 60, with more than $1.24 billion in reported losses, despite younger age groups filing more complaints overall.

What’s next: In light of these findings, the upcoming Benzinga Future of Digital Assets event on Nov. 19 takes on added significance as a platform to discuss the advantages and drawbacks of building a cryptocurrency-based financial system.

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Bettors on the decentralized prediction platform Polymarket expected few mentions of cryptocurrencies and Bitcoin BTC/USD in the hotly anticipated presidential debate between Donald Trump and Kamala Harris.

What happened: The odds of Republican hopeful Trump uttering the words stood at 14% as of this writing, significantly down from 23% seen on Sunday. 

Wagers worth more than $129,000 were placed on the probability of the occurrence, higher than some of the other burning topics like abortion and border security.

The odds of Harris mentioning cryptocurrency and Bitcoin was at 10%, a decline from 14% seen during the weekend.

Trump continued to lead Harris in presidency betting odds, with bettors expecting a 52% chance of the Republican winning the race for the White House.

Polymarket, built atop Ethereum’s ETH/USD Layer-2 chain, Polygon MATIC/USD, has emerged as one of the world’s top prediction markets for U.S. elections in the last few months. The novel initiative allows users to bet on major global events using cryptocurrencies.

See Also: Peter Schiff Will Accept He Was Wrong About Bitcoin If Restaurants Begin To Show Prices In Satoshis Among Other Things

Why It Matters: The upcoming debate will be the second of this election cycle and the first between Trump and Harris, who replaced incumbent Joe Biden following his withdrawal from the race after the first presidential debate.

Notably, the last debate between Biden and Trump saw no mentions of cryptocurrency or Bitcoin.

The outcome of the election was expected to have serious implications for Bitcoin’s price, according to a Bernstein report.

A Trump victory could propel Bitcoin to new heights, potentially reaching $80,000 to $90,000 by the end of Q4, the report said, citing the former president’s vocal support for the asset class.

On the contrary, a Harris presidency could witness the leading cryptocurrency dropping to the  $30,000 to $40,000 range. The analysis identified the absence of cryptocurrency mentions in the Vice President’s speeches and policy pronouncements as a contributing cause to the uncertainty.

While Harris has not shown her stance on cryptocurrencies, her campaign team has tried to engage with top industry names like Coinbase and also earned the support of Ripple co-founder Chris Larsen.

Photo Courtesy: Shutterstock.com

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