Cryptocurrency Frauds Have Increased By 81% In 2021 - Report.

Cryptocurrency Frauds Have Increased By 81% In 2021 - Report.

2021-12-17 | Daniel Smith

Cryptocurrency Frauds Have Increased By 81% In 2021 - Report.

The year 2021 has proven to be no less historic in the cryptocurrency market. In the midst of crypto acceptance now being a phenomenon, frauds in this nascent area garnered news year-round. According to a current analysis by research firm Chainalysis, fraudsters stole over $7.7 billion from consumers this year. The traditional rug pull scam, in which producers start a fake enterprise, entice investors, and then quit the project, escape with the investors' money, was perhaps the most popular type of scam. In all, crypto frauds increased by 81 percent this year compared to 2020, led by rug pulls, according to a blog article published by the blockchain data platform. Rug pullers collected more than $2.8 billion (approximately Rs. 21,333 crore) in cryptocurrencies from sufferers this year. Rug pulls are common in DeFi since, with the correct know-how, it is inexpensive and simple to produce new tokens on the blockchain and offer them on decentralized exchanges (DEXes) devoid of a code audit. For example, in November, investors in a novel cryptocurrency dubbed "Squidgame Cash" or "SQUID" based by the Netflix series Squid Games were possible "rug pulled" following the token dropped by 99.99 percent overnight. This scheme is thought to have netted the scammers over $3.3 million. The investigation into the matter is still underway. Nevertheless, the amount of crypto frauds targeting personal crypto investors has recently declined. The amount of deposits to scam addresses has dropped from roughly 10.7 million last year to 4.1 million this year. Chainalysis also revealed that the money concealment techniques of crypto fraudsters have stayed consistent. In 2021, the majority of stolen cryptocurrency wound up on conventional markets. Bitmart, a cryptocurrency exchange, was hacked previously this month and lost $196 million in crypto assets. As per NewsRoomPost, the hackers utilised a decentralised exchange aggregator named "1inch" to convert the hijacked money for Ether tokens. According to reports, the entire value of crypto crime in 2020 would be over $10.52 billion (approximately Rs. 79,194 crores). According to the aforementioned research, hoaxes and scams are a huge issue, accounting for 67.8 percent of overall bitcoin crime in 2020. Earlier this month, the Federal Bureau of Investigation in the United States stated that cyber fraudsters are tricking unsuspecting individuals into using physical bitcoin ATMs and digital QR Codes to execute criminal transactions and defraud them of assets.

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