By Hassan Mehmood (Saudi Arabia)
The month of April remained safer for cryptocurrency investors in comparison to May. The statistics for crypto scams and rug pulls are investigated by a blockchain security firm named De.Fi.
The month indicated sideways and conservative growth of the cryptocurrency markets. However, a considerable amount of scams did affect crypto investors.
The total accumulated loss for the scams was calculated around $54 million as per the report issued by De.Fi analysts. However, the total losses in crypto scams for April have twice as high noted $101.5 million.
It means that the crypto investors maintained better security practices during May in comparison to April. Meanwhile, the investors were also able to recover around $2.2 million in April whereas there was no reported recovered amount for May losses.
DeFi and Blockchain Projects were Subjected to Scams
The biggest share of scams took place on the BNB chain as per De.Fi report. The amount lost in crypto incidents on BNB was recorded at $37 million. This amount is a summation of 10 different crypto scams.
The second on the list is Arbitrum blockchain’s Jimbo protocol which lost $7.5 million in a rugpull. The third blockchain on the list is Ethereum with a loss record of $2 million in exploits.
In terms of smart contract hack cases, the list starts with Fintoch with a recorded loss of $31.7 million. Deus finance on the BNB chain also suffered from a smart contract exploit that led to $6.2 million in losses for the investors.
Some cryptocurrency projects that suffered major losses include SNOOKER, WSB Coin, Block Forest, land, Mother, Tornado Cash and Linda Yaccarino. The losses in the cryptocurrencies ranged from a loss count of $45k to $733K.
Rug pulls remained prevalent in the cryptocurrency markets among all other types of scams. A total of 12 cases were recorded with a total loss of $37 million.
De.Fi has noted that the total number of technical attacks and cyber security incidents during the month remained comparatively conservative. It entails that the total number of flash loan attacks was only limited to 5 cases with a loss sum of $8.9 million.
Meanwhile, the total losses resulting from exploits were noted to be around $8.8 million with a total of 12 cases. The total losses generated in the month on account of technical attacks were noted at $37 million. The firm also noted exit scams in two different cases with a count of $177K.
Among the tokens that were targeted by scammers, governance tokens took the biggest hit. The report noted a loss of $3.3 million leaving blockchain protocols generating a loss of $3.3 million.
On the other hand, DEXs was hit by attackers on 3 occasions resulting in $4 million in losses. On the other hand, stablecoins suffered from the biggest count of losses in a single incident going as high as $6.2 million.
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