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Crime

Crypto Scam Revenue Up 81% in 2021, Hits $7.7 Billion: Chainalysis (decrypt.co) 17

The explosion of rug pulls in the decentralized finance (DeFi) ecosystem over the past year helped to propel revenue from crypto scams to $7.7 billion in 2021, according to blockchain data firm Chainalysis. From a report: Per Chainalysis' 2022 Crypto Crime Report, revenues from crypto scams in 2021 were up 81% on the previous year, with rug pulls accounting for 37% of all crypto scam revenue -- up from 1% in 2020. In all, rug pulls -- in which developers build a seemingly legitimate crypto project and then abscond with investors' money -- accounted for more than $2.8 billion worth of stolen crypto in 2021. Chainalysis highlighted the fact that code audits -- which would catch the vulnerabilities that enable fraudulent DeFi projects to drain their liquidity pools -- are not required to list a project on decentralized exchanges (DEXs), hence their prevalence in the DeFi sector.
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Crypto Scam Revenue Up 81% in 2021, Hits $7.7 Billion: Chainalysis

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  • by Ol Olsoc ( 1175323 ) on Thursday December 16, 2021 @10:54AM (#62086727)
    Fear not citizens, this is just collateral damage.
  • who would think an increase in transactions, and most importantly, valuation of crypto assets would induce in an increase in the amount of actual dollars taken as crypto scams!

    • So far, it seems like "decentralized finance" is just a euphemism for "wretched hive of scum and villainy."

      • by gweihir ( 88907 )

        So far, it seems like "decentralized finance" is just a euphemism for "wretched hive of scum and villainy."

        Actually, I would say a rug-pull is rather elegant in its simplicity. That people fall for it means the morons that get hit are even more simple, but that game has been played since the human race got organized.

  • by gweihir ( 88907 ) on Thursday December 16, 2021 @01:38PM (#62087507)

    The fascinating thing is that these scams still work well today, with supposedly educated people that have access to all the information on what is happening. Well, and a lot of lies and bullshit too. It seems that many people are completely incapable to fact-check.

  • I can't help but notice the positioning of the next story immediately after this one: "Melania Trump Launches NFT Platform in First Public Endeavor Since White House" [slashdot.org]

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