A report by blockchain agency, Chainalysis, suggests scammers stole round $7.7 billion from traders by way of varied scams and rug pulls this 12 months. The report mentioned crypto scams rose by over 80 p.c in 2021 as in comparison with 2020. Whereas there have been many run-of-the-mill scams the place scammers used phishing and electronic mail scams, some cons caught the world’s consideration. Here is an inventory of among the greatest crypto scams of 2021.
Greatest crypto scams of 2021
Social media influencers had been among the many extra outstanding proponents of cryptocurrencies in 2021. Many of those influencers used platform and recognition to knowingly or unknowingly promote pump and dump schemes. On this scheme, proponents usually artificially inflate the value of crypto by way of false promoting and relentless promotion to promote their cash and pocket the income whereas traders watch their cash taking place the drain.
One rip-off that utterly embodied this ideology was what occurred with savethekids token. In June, an e-sports group FaZe clan’s members began selling a charity-based cryptocurrency referred to as SaveTheKids. The members of FaZe clan went all weapons blazing for the promotion of this token with official promotional movies and even their picture on the SaveTheKids official web site.
Shortly after the token formally launched, the preliminary traders who held nearly all of the token bought their tokens, and the crypto quickly tanked.
Some sharp-eyed sleuths on the web began noticing a sample the place FaZe clan would promote crypto, and it could tank instantly after launch. After investigations, the FaZe clan suspended a lot of its members.
However after all, it was one other rug pull. A rug pull is a malicious manoeuvre within the cryptocurrency trade the place crypto builders abandon a mission and escape with the funds they acquired initially.
Though the rip-off was very well-planned, there have been tell-tale indicators of a rip-off from the start. For one, no official creators of the present had been concerned with the cryptocurrency in any capability in any respect.
And the preliminary traders who purchased the coin began complaining that they might not promote the tokens.
Poly Community Hack
However the excellent news was that the hacker was a ‘white hat hacker’, a hacker who exposes vulnerabilities in a community to assist the platform tighten its safety.
In just a few weeks, the hacker returned the entire sum of cash and even bought rewarded $500,000 by the poly community for exposing the vulnerability.
In April, the Cajee brothers initially claimed that their agency was hacked, and the cash was stolen from their consumer’s accounts. However the story didn’t stand beneath scrutiny, and ultimately, traders realised that the brothers had been mendacity.
The victims’ attorneys estimated that about $3.6 billion was stolen in bitcoins. The whereabouts of the brothers are nonetheless unknown.
Stolen Bored Ape NFTs
The scammer tricked Beccera beneath the guise of offering technical help for his NFTs. The scammer stole three ape NFTs, and it’s estimated that every of them was value $225,000. However Beccera claimed the three apes had been collectively value $1 million.
(Edited by : Yashi Gupta)