Blockchain security firm, Beosin has just published a report revealing that losses resulting from rug pull and exit scams in the crypto market surpassed those from decentralized finance (DeFi) hacks in May.
On June 1, Besoin took to Twitter to disclose total losses from rug pull and scams throughout May reached over $45 million across six incidents. On the other hand, there were 10 attacks on DeFi protocols that drained almost $19.7 million. However, on a positive note, Beosin also said the amount of money involved in various security incidents continued to decline for two months.
💔Rug Pull Outpaces Attacks: The total amount involved in #rugpull reached $45.02 million, surpassing losses from attacks
— Beosin 🛡 Blockchain Security (@Beosin_com) June 1, 2023
Crypto-Related Scams On The Rise
It noted 22 typical security incidents and the total amount of losses from various attacks was about $19.69 million, decreasing about 79% compared to April. In addition, the total amount involved in fraud reached $45.02 million, more than the amount lost in attacks.
According to the report, the most significant rug pull occurred on May 24 when the crypto project Fintoch allegedly made off with $32 million. Meanwhile, the largest attack on the DeFi platform last month was a $7.5 million breach of Jimbo’s protocol, an Arbitrum-based liquidity protocol. Besoin wrote,
“The amount involved in Rug Pulls exceeded that in attacks this month, and new ways of stealing coins such as using shared rechargeables to steal private keys also emerged. Hackers and scammers are gradually shifting the target of their attacks from various project parties to ordinary users.”
Owing to such exploits, the security firm also recommended that crypto users enhance their anti-fraud awareness, conduct thorough due diligence before investing and learn how to better secure their cryptocurrencies. Beosin warned against using shared or public charging devices for mobile phones, as they may be modified to inject malicious programs that compromise private keys.
Exploits Continue To Plague Crypto Industry
In the past few years, investors and users trading on cryptocurrency platforms have been increasingly losing billion worth of dollars in various fraudulent activities such as exit scams, phishing attacks, rug pulls, and flash loan attacks.
Combining all the incidents in April we’ve confirmed ~$103.6M lost to exploits, hacks, and scams.
Exit scams were ~$9.3M.
Flash loans were ~$19.8M.
See the details below 👇 pic.twitter.com/jflvMPiJGQ
— CertiK Alert (@CertiKAlert) April 30, 2023
Fraudsters have become more and more sophisticated along with the maturity of the digital assets industry, targeting unsuspecting investors and stealing their money. In April 2023, CertiK reported hackers looted more than $103 million of funds from crypto projects and investors in April 2023, in the form of exploits, exit scams, and flash loan attacks.