Shortcomings in the “Elusive Comet” attack should serve as a wake-up call. Someone lost $100,000. One hundred thousand dollars! Gone because of a Zoom exploit. We should have a serious discussion about why our existing crypto regulations have not only failed consumers, but you and I. It’s not only the tech, but the monumental failure of these watchdogs protecting us in name only. Think of it like this: you're buying a fancy new car (crypto), but the traffic laws (regulations) are from the horse-and-buggy era. What could possibly go wrong?
Global Crypto Wild West Still Exists
The absence of a cohesive and coherent international regulatory framework for crypto assets. It's a global Wild West out there. Cybercriminals are moving like grandmasters on a global cyber chessboard. Each one of those little squares is a different country, frequently with their own rules, sometimes with no rules! They jump state lines with great ease and impunity, taking advantage of these jurisdictional blindspots.
Picture this: A scam originates in Country A, which has zero crypto regulations. The money gets laundered through Country B, where the rules are lax and the rule of law even more so. The victim resides in Country C, where there are stringent regulations. Unfortunately, those rules don’t do anything to protect them because the crime happened outside their community. It's the perfect storm for scammers. I know that other countries are almost rolling out the welcome mat for this kind of stuff because they have very loose regulations. This creates rich environments where cybercriminals feel at home. Investor protection is a key interest, but it’s not the only one. We need to keep crypto from being used to fund terrorism and other criminal behavior, too.
Regulation Moves At Snail's Pace
It’s the Zoom-powered “Elusive Comet” attack that serves as a prime example. A legitimate tool, Zoom, was weaponized. It’s brilliant, in a horrifying way. Here's the outrage: regulators are always playing catch-up. Unfortunately, innovation in the crypto space is moving at warp speed, and regulatory bodies are still operating at a glacial pace. It’s akin to trying to halt a Formula 1 race with a mountain bike.
Think of it like this: by the time regulations are finally in place to address one type of attack, the criminals have already moved on to the next, more sophisticated method. This isn't just about Zoom. It’s not even about the current platform – it’s about the next real platform that will be gamed. It’s not just because of the latest social engineering scam that can con even the most seasoned crypto investor. We don’t just want regulators to catch up after the damage is done—we need them to be proactive, anticipating these threats before they happen.
Enforcement Lacks Teeth and Resources
Yet even the best regulations are useless if they aren’t enforced. That’s like passing a law against speeding, but not putting any police officers on the highway to enforce it. What's the point? We require far more resources and expertise focused on the hard job of cracking down on crypto crime. As a result, our cybersecurity agencies will receive increased funding. It will train law enforcement to identify illicit activity and create new tools to track and trace bad actors in the crypto world.
It’s one thing to develop new rules, but we have to make sure they’re being enforced. Victims like Jake Gallen, who lost more than $100,000, deserve justice. Our courageous law enforcement partners are working around the clock to pursue the monsters who would do this. Our prosecutors are determined to return these stolen assets and see justice served. The reality that these scams are only growing in number is a strong indicator of the woeful state of our enforcement or lack thereof. Now nearly a year old, the Security Alliance (SEAL) report was released in March of 2025. Are we really content to sit back and prepare for the next report loaded with even more victims?
This is not only a national issue, but an international one as well. Strong international cooperation between regulators is crucial to create an efficient and harmonized regulatory framework for cryptocurrency at large. This requires engagement with foreign allies to share intelligence, coordinate enforcement actions, and create uniform standards for crypto regulation.
I call for the establishment of a global task force to combat cryptocurrency cybercrime in all its forms. This local task force needs to have law enforcement agencies, regulatory bodies, and cybersecurity experts from every corner of the globe as primary stakeholders. They need to be charged with creating industry best practices, sharing intelligence and data, coordinating international investigations and much more.
Truthfully, if we don’t stop this parade of abuse now, the “Elusive Comet” attack will only be the first of many. That future is the real danger, foreshadowing more sophisticated and devastating attacks, with millions of victims. Now more than ever it’s time for regulators to put consumer safety first and protect us all. It's time for international collaboration. It's time to demand change.
Honestly, if we don't act now, the "Elusive Comet" attack will be just the beginning. The future could bring even more sophisticated and devastating attacks, leaving countless victims in their wake. It's time for regulators to step up and protect us. It's time for international collaboration. It's time to demand change.
