Chainalysis, a blockchain analysis company, just released their 2018 cryptocurrency scam report. The study found that $7.74 billion was swindled in the first half of this year alone. More than two-thirds of these scams involved cryptocurrency theft and hacking; with one notable exception: fraud via ‘Ponzi’ schemes accounted for more than $2 billion in revenue from April to June.
The “rug pull check crypto” is a scam that has been around for a while. Chainalysis, an analytics company, found that rug pulls pulled in over $7.7 billion of the year’s crypto scam revenue.
According to a first peek at Chainalysis’ Crypto Crime Report, scams are once again the most common kind of cryptocurrency-based crime by transaction volume.
According to the blockchain data platform, this year’s crypto scam earnings exceeded $7.7 billion, up 81 percent from 2020.
Scams using cryptocurrency in 2021
This year’s crypto scam income climbed significantly compared to 2020, yet it still fell short of the all-time high set in 2019.
Chainalysis is the source of this information.
The Finiko Ponzi scam, which targeted Russian speakers across Eastern Europe and took in more than $1.1 billion from victims in 2021, was singled out in the study.
“While overall scam income climbed dramatically in 2021, when we exclude rug pulls and confine our study to investment scams–even with the introduction of Finiko–it remained steady,” the paper said.
This means that there were fewer individual scam victims, however the average amount stolen from each victim grew, according to Chainalysis.
The research also said that, in comparison to prior years, criminals’ money laundering techniques remained constant, since most coins transferred to fraudulent addresses ended up on mainstream exchanges.
Chainalysis is the source of this information.
Rug pulls are becoming more popular.
Rug pulls plagued the DeFi ecosystem in 2021, netting victims over $2.8 billion in cryptocurrency.
Rug pull is a relatively new sort of exit fraud, in which project insiders drain cash from the liquidity pool, causing the token’s price to plummet.
In 2021, they contributed for 37% of total bitcoin scam earnings, compared to only 1% in 2020.
“It’s crucial to recall that not all DeFi efforts start as rug pulls,” Chainalysis said, citing the year’s largest rug pull, which was focused on Turkish CEX Thodex.
Nearly 90% of the value taken in rug pulls this year is due to the Thodex fraud, in which consumers lost over $2 billion in cryptocurrency.
All of the other 2021 rug pulls started out as DeFi ventures, with AnubisDAO and Uranium Finance being the largest of the bunch.
In comparison to the prior years,
The average lifetime of financial scams has been decreased, according to the research, which may explain why “the number of financial scams active at any point in the year–active meaning their addresses were receiving funds–rose dramatically in 2021, from 2.052 in 2020 to 3.300.”
“One explanation for this might be because investigators are becoming more adept at detecting and prosecuting frauds,” Chainalysis said.
According to Chainalysis, the long-standing statistical association between crypto prices and scamming activity has shifted this year, indicating that the crypto market is maturing.
“Scams often occur in waves correlating with prolonged price increase in prominent cryptocurrencies like Bitcoin and Ethereum, which typically also leads to influxes of new users,” according to the paper, which noted that scamming activity peaked during bull runs in 2017 and 2020.
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The “list of rug pull crypto” is a list of cryptocurrency scams that have been pulled this year. The total scam revenue for 2018 has surpassed $7.7 billion. This figure is up from $6.5 billion in 2017 and $4.8 billion in 2016, Chainalysis found.
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