ZachXBT: Politicians like Trump are encouraging criminal behavior with memes and the dismissal of encryption lawsuits.

Gate News bot reported that two blockchain crime investigators stated that the memecoin (memecoin) promoted by politicians such as Donald Trump, along with loose regulations and the abandonment of cryptocurrency lawsuits by U.S. regulators, have initiated a "criminal Supercycle" in Crypto Assets.

Blockchain investigator ZachXBT posted on X on Thursday that Crypto Assets have always been prone to abuse, but "since politicians launched memecoin, the number of lawsuits withdrawn has significantly increased, further fueling this behavior."

He pointed out that influencers and key thought leaders in the crypto assets sector who scam their fans "will not be punished in any way."

"That said, compared to the current favorable environment, now is the best time for activities like black hat, phishing, social engineering, and robbery, whereas gray hat activities are not," ZachXBT added.

ZachXBT stated that the lack of regulation, the crackdown on projects with undisclosed paid advertisements, and other similar behaviors have also fueled the so-called Supercycle.

"If they spent time on regulation instead of holding open source developers or blue-chip decentralized protocols accountable, this phenomenon would only prevail because it has never truly had an impact," he said.

The cybersecurity company Hacken reported in April that in the first quarter of 2025, losses from cryptocurrency hacking attacks exceeded $2 billion, with phishing scams causing losses of $96 million and rug pull scams causing losses of over $300 million.

Blockchain detective Taylor Monahan also stated that as long as scammers can still achieve returns through huge profits, they are unlikely to change their minds.

"This behavior will not bring any negative social, economic, or legal impacts or friction. Secondly, this behavior is very simple and can immediately yield a large amount of [money]," Monahan said.

He believes that the Crypto Assets sector is in a "predicament" because it retains too many hackers and scammers.

"In the past two cycles, most people basically went all out, such as pig butchering scams, [North Korea], and malware as a service. If crypto assets were to disappear tomorrow, ransomware would be the biggest loser," Monaghan lamented.