Cryptocurrency-related fraud has cost Americans more than $1 billion since the start of 2021, the United States Federal Trade Commission said in a report. More than 46,000 people were scammed in the time frame.

The victims largely belong to a younger age group — those between the ages of 25-40. People in this age group were three times more likely to be scammed, according to CNN reports citing the FTC research.

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A quarter of every dollar lost by individuals investing in cryptocurrency was attributed to fraud in the United States. The median individual reported loss was $2,600, the Federal Trade Commission found.

Most of these scams were also concentrated on the most popular variant of cryptocurrency: Bitcoin. While more than 70% of such fraud was connected to Bitcoin, Tether and Ether were next on the list.

The FTC report found that more than half of the reported losses, amounting to $575 million, were linked to fake investment opportunities. Such misleading ads were majorly found on social media platforms like Instagram and Facebook, CNN reported.

“The stories people share about these scams describe a perfect storm: false promises of easy money paired with people’s limited crypto understanding and experience,” the report said.

Cryptocurrency, still largely unregulated by federal authorities in the United States, has gained popularity for making quick profits for investors. The market is considered to be highly volatile.

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According to CNN reports, Bitcoin has lost more than half of its value after November, when it hit its peak of $69,000. A large number of investors have also pulled out of riskier assets due to rising interest rates in the United States.

Some states in the United States, however, have already started taking steps to regulate the crypto market. An executive order from Democratic governor Gavin Newson instructed Californian authorities to form regulations for an economy that co-exists with digital currencies. The initiative will also attempt to merge blockchain computer coding with administrative operations.