#blockchain fraud

The rapid expansion of crypto asset use has brought a parallel rise in fraud cases involving anonymous or pseudonymous transactions. Identifying the wrongdoer is a critical first step for victims seeking redress. The traditional weapon in the litigator’s arsenal has long been the Norwich Pharmacal Order (NPO), but in the fast-evolving world of blockchain-based crime, this tool may be unwieldy or…

Key Takeaways Tokenized real estate platforms are leaving both investors and tenants vulnerable to mismanagement, legal ambiguity, and financial loss. A new wave of long-con crypto scams is specifically targeting real estate professionals through fake relationships and phony investment sites. Smart contracts are not foolproof; without proper auditing and legal backing, they can be exploited or fail to protect investors. Smart contracts promised transparency. What investors got instead was fraud, eviction notices, and digital heartbreak. Crypto and blockchain were supposed to democratize real estate, but what if the technology built to protect your investments is now helping scammers steal them? Are you ready to risk your retirement savings for a property token you can’t touch, manage, or trust? In this exposé, we reveal: The long-con crypto scam targeting real estate professionals The dirty secrets behind tokenized housing disasters in Detroit The smart contract loopholes scammers use to wipe out your wallet Read this before your next deal becomes your biggest regret. The Crypto Real Estate Revolution Was a Lie In theory, tokenized real estate sounded like a dream. Buy a piece of property for just a few hundred dollars. Own fractions of rental income streams. Sell your shares instantly on digital exchanges. No banks. No brokers. No bureaucracy. By 2024, tokenization platforms like Lofty and RealT were making waves, promising frictionless investing and passive income from rental properties. Blockchain technology was touted as the ultimate fraud shield, offering transparent ledgers and automated smart contracts that enforce deals without middlemen. But now, in this first half of 2025, reality is hitting hard. In early 2025, many investors were quietly losing everything. Tenants were being evicted, and scammers were targeting real estate professionals using elaborate psychological traps. How Real Estate Agents Are Getting Slaughtered in Long-Game Crypto Scams According to a June 23, 2025, bulletin from the U.S. Secret Service, a new cryptocurrency scam has emerged targeting real estate professionals through a method known as “pig butchering.” In this con, a fraudster pretends to be a wealthy all-cash buyer and initiates a long-term relationship with a real estate agent. The scammer brags about making a fortune through crypto and then invites the agent to try the investment platform. It looks legit. The agent invests a little. Gets a quick return. Withdraws some profit. Trust is built. Then comes the bigger investment. Sometimes it’s tens of thousands of dollars. Sometimes it’s an agent’s entire retirement fund. That’s when the platform disappears. The agent loses everything. Will Looney of CertifID, a fraud prevention company, explains that these scams are run by sophisticated international crime networks. Their targets are often real estate professionals because they are used to building trust quickly with strangers and have access to funds and clients. The National Association of Realtors (NAR) warns all professionals to avoid unsolicited messages, especially those urging investment or moving communication off-platform. The FBI recommends reporting such scams to the Internet Crime Complaint Center at www.ic3.gov. Detroit’s Tokenized Nightmare: When Blockchain Turns into Blight In February 2025, the New York Post reported that thousands of renters in Detroit were left stranded in poorly managed properties owned through tokenized platforms like RealT. These properties, many in disrepair, were sold to investors as fractional tokens. The idea was that rent collected from tenants would be distributed automatically to token holders through blockchain. Instead, renters reported crumbling buildings, rat infestations, eviction threats, and no clear management. Many did not know who their landlords were. Maintenance requests went unanswered. In one case, a tenant was threatened with eviction from a property that had been tokenized without proper title resolution.

Blockchain-Startup CEO Settles With Canadian Regulators Over Misleading Content

Alex Tapscott, the co-founder of the blockchain company NextBlock, has reached an agreement with the Ontario Securities Commission after producing "misleading content". Per the report by The Globe and Mail on May 13, 2019, the entrepreneur, aside paying the sum of $300,000 as penalty fine, will a...