Cryptocurrencies: Scams surpass DeFi exploits

The cryptocurrency web is often caught in the mesh of fraud and deception. May saw losses from scams surpass those attributed to exploits of decentralized finance (DeFi) protocols.

Soaring rug pull scams

So-called ‘rug pull’ or ‘exit scams’ surprised many investors in May. In these scams, the founders of a project suddenly disappear, taking with them the investors’ money. In fact, they caused more casualties than anticipated.

According a June 1 report issued by Beosin, a firm specializing in blockchain security, these scams have had disastrous financial consequences. More precisely, they caused losses of more than $45 million following six major incidents.

The most egregious case was that of the crypto project fintoch, who allegedly stole $32 million on May 24. These dizzying figures highlight the need for increased awareness. Also, better protection for crypto investors remains paramount.

Significant drop in exploitations of DeFi protocols

Attacks specifically targeting decentralized finance (DeFi) protocols showed the opposite trend. In May, they fell sharply, totaling $19.7 million.

This amount represents a spectacular drop of nearly 80% compared to April. Indeed, the losses associated with these types of exploits have shown a constant downward trend for the past two months.

Last month’s largest attack targeted the Jimbos protocol. The losses following this attack are estimated at $7.5 million.

Faced with this resurgence of scams, need strongly encourages cryptocurrency users to be extra vigilant and be wary of certain practices, such as the use of shared charging devices that may compromise their private keys. This alert recalls the one issued in April by the FBI, warning against public USB ports.

In short, in the cryptocurrency industry, caution remains in order. Meanwhile, in an entirely different context, American financial freedom appears to be threatened by the impending arrival of the digital dollar.