CipherTrace, a crypto intelligence firm, reported a decline in losses related to cryptocurrency. The report analyzed what the virtual market had from January to April. However, keep in mind that the fraud cases went high during that period.
By April ending, the cryptocurrency industry had lost $432 globally in the name of crypto fraud. You may have come across scam news if you are a crypto enthusiast. You have to admit that virtual trading is risky with criminals in the space. Almost 56% of the losses are related to DeFi, a new record in the platform.
DeFi facilitates crypto transactions without banking involvement. The software uses an automatic algorithm that sets real-time rates basing on the market supply and demand. Ethereum blockchain has several DeFi applications.
The cryptocurrency market has been witnessing enormous losses in the hands of scam artists. In 2020, the market lost $1.9 billion, with 2019 having the highest record of $4.5 billion crypto losses.
Once again, digital coins are in the limelight as Ether, the second-largest asset, and Dogecoin surge.
The fall in cryptocurrency crime indicates industry maturity, with infrastructure improvements and exchanges and firms boosting their security systems.
However, things are not the same with DeFi. By Wednesday, DeFi loans amounted to $86 billion, according to data from DeFi pulse. That shows a 650% increase, from $11 billion back in October.
Criminals are flooding in the current booming crypto market. Analysts anticipate that criminal cases may increase as DeFi grows more.
Cipher Trace CEO Dave Jeans said that scammers take advantage of the increased institutional and retail crypto investments, luring individuals into fraud. For that reason, avoid drowning in any hype in the digital markets. Scammers explore loopholes that exist in platforms with weak securities.
For now, DeFi related hacks are over the $129 million stolen in the entire 2020. Keep in mind that DeFi recorded no losses in 2019.
According to the report, the highest DeFi loss was the funds worth $80 million, lost on 19th April from AsyFi, a Polygon Network, and a DeFi’s project. AsyFi declared that a scam artist escaped with around $80 million from its crypto wallet.