What are Bad Actors?

Time to read: 3 minutes

Date: January 3, 2023

Cryptocurrency is a relatively new technology that has gained popularity in recent years. It is used as a form of digital money that can be used to purchase goods and services. Cryptocurrency is also used as an investment vehicle by many people around the world. As with any financial technology, there are always those who are looking to use it in illegal ways. In this article, we’re going to go over an unfortunate facet of crypto: Bad actors. 

What are Bad Actors in Crypto? 

Bad actors in the crypto space engage in illegal activities such as hacking, fraud, theft, and money laundering. It is important to be aware of these risks and take measures to protect yourself and your digital assets. Bad actors use many different forms of attacks. 


Hacking is one of the most common types of illegal activities associated with cryptocurrency. It involves criminals gaining access to computers or networks to steal cryptocurrency or data. Hackers can use various methods to gain access, such as malware, phishing emails, and social engineering.  

  • Malware is malicious software that can be installed on computers or networks without the user’s knowledge. It can be used to collect information, such as usernames and passwords, or to gain access to cryptocurrency wallets. It can also be used to disable computers and networks, or to spread other types of malicious software.

  • Phishing emails are another form of hacking. They are sent to unsuspecting users in an attempt to trick them into revealing confidential information or downloading malicious software. They are typically made to look like legitimate emails from companies or individuals, and may contain links or attachments.

  • Social engineering is another type of attack used by hackers. It involves manipulating people into revealing confidential information or taking advantage of their trust. Hackers may use social media or other online platforms to target victims, or they may use physical techniques such as impersonating someone or posing as an authority figure.

Hacking is a serious problem in the cryptocurrency community, and it is important to take steps to protect yourself. Always be aware of suspicious emails or messages, and never click on links or download attachments from unknown sources. Additionally, it is important to use strong passwords and two-factor authentication when setting up wallets. Finally, it is important to stay informed of the latest security threats and to keep your software up to date.


Fraud is unfortunately a common occurrence in the world of cryptocurrency. It can take a variety of forms, but all involve a person or group of people deliberately deceiving someone else in order to gain something of value, such as money or cryptocurrency. Fraudsters can use a range of tactics, including phishing, spoofing, and identity theft. 

  • Phishing is a common tactic used by fraudsters, where they will send out emails or other messages that appear to be from a legitimate source. These messages will usually contain links or instructions for the person to follow, which will then lead them to a malicious website or ask them to provide personal information such as their passwords or credit card numbers. 

  • Spoofing is another popular tactic used by fraudsters, where they will impersonate other people or companies in order to gain access to their accounts or personal information. This is usually done by creating fake accounts or websites that seem legitimate. 

  • Identity theft is also a form of fraud, where a fraudster will use someone else's personal information, such as their name, address, or bank account details, in order to gain access to their funds or accounts. 

Fraud is a major issue in the world of cryptocurrency, and it is important to be aware of the tactics that fraudsters may use in order to protect yourself. It is also important to always be wary of any messages or emails that appear to be from legitimate sources, and to never provide any personal information unless you are absolutely certain that the source is trustworthy.


Theft is one of the most common types of illegal activity related to cryptocurrency. It occurs when someone takes something that belongs to someone else without their permission or consent. This can happen in a number of ways, such as hacking into someone’s exchange account or wallet, or using malware to steal their private keys.

In some cases, theft can be more subtle. For example, some bad actors may create cryptocurrency scams such as Ponzi schemes, pyramid schemes, or other fraudulent investments. These scams often promise high returns with little risk, but in reality, they’re just a way to siphon money away from unsuspecting victims.

It’s important to note that theft related to cryptocurrency isn’t always easy to detect. For example, some bad actors may use phishing tactics to acquire private keys or passwords. They may also use malware and ransomware to gain access to sensitive information.

It’s important to be vigilant and aware of potential theft-related activities. It’s also a good idea to use strong passwords and two-factor authentication on all of your accounts, and to keep your private keys safe and secure. Finally, it’s important to do your research and make sure any investments you make are legitimate.

Bad actors in the crypto space can also engage in money laundering, which is the process of transferring money or assets from one person or group to another in order to conceal the source of the funds. Money laundering is often used to finance terrorist activities, drug trafficking, and other illegal activities. 

Ready to eliminate the noise and get precise web3 answers? Lobby is here for you! Ask a question!

Ready to solve all of your form and survey needs? Canvas is the solution! Get started here!