Rug Pull Losses Surpass DeFi Exploits in May
The amount of cryptocurrency lost to “rug pull” or “exit scams” — where founders suddenly disappear with investors’ money — has exceeded the amount stolen from decentralized finance (DeFi) projects in May, according to a report from blockchain security firm Beosin.
Beosin Report Reveals Shocking Numbers
The report, published on June 1, indicated that losses from rug pulls and scams in May reached over $45 million across six incidents. In contrast, there were 10 attacks on decentralized finance (DeFi) protocols, resulting in losses of only $19.7 million.
Decrease in DeFi Exploits
This figure represents a nearly 80% decrease from April, with losses from DeFi exploits having been on a downward trend for two months.
The Largest Rug Pull
The most significant rug pull incident was the alleged $32 million heist by crypto project Fintoch on May 24. The largest attack on a DeFi platform was the $7.5 million exploit of Jimbos protocol.
Cybercriminals Shift Targets
“Hackers and scammers are gradually shifting the target of their attacks from various project parties to ordinary users,” Beosin wrote in its report.
Recommendations for Crypto Users
The report urged crypto users to “raise their anti-fraud awareness,” conduct due diligence before investing in a project, and learn how to better safeguard their crypto. It also advised against using shared or public charging devices, which could be manipulated to introduce harmful programs capable of compromising private keys.
Warning from US FBI
The United States Federal Bureau of Investigation (FBI) echoed this warning in April, urging the public to avoid using free charging stations typically found at airports and other public spaces. These USB ports have been exploited by cybercriminals to introduce malware and monitoring software onto devices.
Conclusion: The Changing Landscape of Crypto Scams
The blockchain landscape is changing, and so are the methods and targets of scams. This shift emphasizes the importance of remaining vigilant and being aware of the changing tactics of fraudsters. Crypto enthusiasts should heed the advice from Beosin and the FBI, enhancing their cybersecurity practices and being cautious where they invest their money and charge their devices. The rise of rug pull scams over DeFi exploits serves as a reminder that the crypto world, while full of opportunity, is also fraught with risks. As always, the golden rule applies: Do your research before investing.