The surge has been fueled by a rise in so-called "rug pulls" — predominantly found in the world of decentralized finance.
It's been another blockbuster year for crypto scams, according to new figures released by Chainalysis.
The surge has been fueled by a rise in so-called "rug pulls" — predominantly found in the world of decentralized finance — where the founders of a project "abandon it unexpectedly, taking users' funds with them."
Although scams remain "one of the biggest threats to cryptocurrency's continued adoption," the blockchain intelligence firm suggests that there are reasons to be optimistic — with a number of businesses using data to "protect their users and nip scams in the bud before potential victims make deposits."
Diving into the Numbers
The statistics in the report are somewhat bittersweet.
Although this in and of itself is good news, it does mean that the average amount taken from each victim has risen substantially.
"DeFi is one of the most exciting, innovative areas of the cryptocurrency ecosystem, and there are clearly big opportunities for early adopters. But the newness of the space and relative inexperience of many investors provides a prime landscape for scamming opportunities by bad actors. It'll be difficult for DeFi's growth to continue if potential new users don't feel they can trust new projects, so it's important that trusted information sources in cryptocurrency — whether they're influencers, media outlets, or project participants — help new users understand how to spot shady projects to avoid."