2022 highlights some of the biggest crypto scams and trends

BeInCrypto takes a look at the top trends in cryptocurrency scams And the biggest events of 2022.

Between January and November 2022, hackers made off with $4.3 billion worth of cryptocurrencies. report good, This accounts for an increase of about 37% from 2021 year-over-year. But while the total amount increased, crypto scams in 2022 saw the lowest individual transfers in the last four years.

Like last year, most cryptocurrency hacks and scams in 2022 resulted from attacks DeFi Protocol, Exchange Platform and Blockchain Bridge. Where Did Nearly 72% Of The Cryptocurrencies Stolen By Hackers In 2021 Come From? DeFi protocols, while 21% of all crypto hacks that year took advantage of vulnerabilities in DeFi. This year, around 97% of all stolen cryptocurrencies were acquired from DeFi protocols. Meanwhile, breaches of cross-chain bridges are predicted to account for an estimated $1.4 billion in losses in 2022.

According to Solidus Labs, 2022 saw a 20% increase in crypto scams compared to 2021, with ragpulls rising in prominence. In 2021, investors lost $2.8 billion due to Ragpulse, in which investment funds were suddenly stolen by project creators. Meanwhile, 2022 saw over 188,000 events on various blockchains, such as BNB and Ethereum, Solidus Labs also reported that 12% of all BEP-20 The coin was associated with scams, meaning that Binance’s BNB chain experienced the most scams this year.

One type of cryptocurrency scam on the rise this year was the so-called pig butcher, or romance plans. In these instances, fraudsters will lure the victim online and convince them to invest in crypto over a period of time, only to eventually block them and abscond with the funds.

According to a survey by Social Catfish, romance scams start on dating apps (35%), Facebook (10%) and various other apps. While victims lost more than $139 million worth of crypto to these schemes in 2021, Americans lost $185 million worth of crypto to romance scams in Q1 2022 alone.

Americans lost $329 million to cryptocurrency scams in the first quarter of 2022, while Australians lost $166 million for the whole year. Additionally, investors in Hong Kong lost $50 million in a cryptocurrency scam in 2022. Meanwhile, hackers linked to North Korea have stolen around $1 billion worth of cryptocurrencies from DeFi protocols.

Biggest events of the year

Yet due to the proliferation of these forms of crypto scams this year, the biggest losses came from a far more reliable source. After cryptocurrency exchange FTX filed for bankruptcy, an investigation revealed that $1-$2 billion of customer funds were Missing, This makes it the biggest cryptocurrency scam of the year.

However, the next two biggest losses were attributed to the more traditional means of crypto scamming mentioned above. hackers in march stole Some $615 million in USDC and Ethereum from Axi Infinity’s Ronin Network. The third biggest loss occurred in early February when a hacker exploited Wormhole Protocol for about $325 million in Ethereum.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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