Crypto Users Suffer More in Rug Pulls Than DeFi Projects- Report

According to a recent report by blockchain security firm Beosin, the amount of cryptocurrency lost due to "rug pull" or "exit scams" surpassed the funds stolen from decentralized finance (DeFi) projects in May. The report, published on June 1, highlights that rug pulls and scams resulted in losses exceeding $45 million across six separate incidents.

Simultaneously, decentralized finance (DeFi) protocols experienced a total of 10 attacks, resulting in a cumulative gain of $19.7 million for the attackers. This figure represents a substantial drop of approximately 80% compared to the losses incurred in April. 


The report further indicates that losses stemming from such exploits have been progressively declining for the past two months.


According to Beosin, there is a noticeable shift in the targets of hackers and scammers, as they are now increasingly focusing their attacks on ordinary users rather than various project parties. 


In response to this trend, Beosin advises crypto users to heighten their awareness of fraud and take necessary precautions. They recommend conducting thorough due diligence before investing in any project and acquiring knowledge on how to enhance the security of their cryptocurrency holdings.


In May, one of the most substantial rug pulls was attributed to the crypto project Fintoch, which allegedly absconded with a staggering $32 million. Additionally, Beosin reported that the largest attack on a DeFi platform last month was recorded at $7.5 million, targeting the Jimbos protocol.


In a similar vein, the United States Federal Bureau of Investigation (FBI) cautioned the public in April, advising against utilizing free charging stations, particularly those available at airports.


With the ever-evolving cryptocurrency landscape, the increased occurrence of rug pulls and exit scams poses a substantial risk to investors. Beosin's report emphasizes the importance of heightened awareness and thorough due diligence prior to making any investment in a project. By staying updated on the latest security measures and taking steps to protect personal cryptocurrency assets, individuals can effectively mitigate the risks associated with this evolving financial domain.

Previous Next

Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.