Crypto Scams Outpace DeFi

In May, the amount of cryptocurrency lost to “rug pull” or “exit scams”—in which founders abruptly leave with investor funds— exceeded the amount stolen from decentralized finance (DeFi) projects, according to a blockchain security firm.

Beosin reported on June 1 that in May, losses from scams and rug pulls totaled over $45 million across six incidents.

In the meantime, ten attacks on decentralized finance (DeFi) protocols yielded earnings of $19.7 million.

The amount represents a decrease of nearly 80% from April, and losses from these types of exploits have been decreasing for two months, the report added.

Fintoch, a cryptocurrency project, allegedly stole $32 million on May 24. This is the largest of the alleged thefts.

According to Beosin, the $7.5 million attack on the DeFi platform’s Jimbos protocol was the most significant last month.

“Hackers and scammers are gradually shifting the target of their attacks from various project parties to ordinary users,” Beosin wrote.

It was suggested that crypto users “raise their anti-fraud awareness,” conduct due diligence on a project before investing, and learn how to secure their cryptocurrency better.

Beosin also cautioned against using shared or public charging devices for mobile phones, as they could be modified to inject malicious software that compromises private keys.

The Federal Bureau of Investigation of the United States issued a similar warning in April, stating that free charging stations like those found in airports should be avoided.

The FBI’s Denver office tweeted on April 6: “Bad actors have figured out ways to use public USB ports to install malware and monitoring software on devices.” Instead, it was recommended to carry a charger and USB cable for use in an electrical outlet.