New Delhi: Cryptocurrency scammers netted $7.7 billion in cryptocurrency from victims in 2021, an 81 percent increase in losses compared to the previous year, a new report showed on Monday.
According to blockchain analysis firm Chainalysis, about $1.1 billion of the $7.7 billion was attributable to a single scheme that allegedly targeted Russia and Ukraine.
According to a ZDNet report, a major source of increasing cryptocurrency scams in 2021 was the ‘vein bridge’, where the developers of a new cryptocurrency disappear and take the backers’ funds with them.
Rag Bridges accounted for 37 percent of all cryptocurrency scam revenues of $2.8 billion in 2021.
“The largest form of cryptocurrency-based crime and specifically targeted at new users, fraud has become one of the biggest threats to the continued adoption of cryptocurrency,” Chainalysis said.
The report found that the number of active financial scams increased from 2,052 in 2020 to 3,300.
Scams also increased with the rise in value of popular cryptocurrencies such as Ethereum and Bitcoin.
“The most important measure is to avoid new tokens that have not undergone a code audit. Code audits are the process through which a third-party firm analyzes the code of the smart contract behind a new token or other DeFi project. , said Chainalysis.
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