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According to Chainalysis, the world's swindlers pulled in nearly $8 billion in revenue in 2021, led by a new tactic called "rug pulls."
The revenue from scam increased by 81% from a year ago to $ 7.7 billion, according to a post on the data platform's website.
According to Chainalysis, scamming is one of the biggest threats to the continued adoption of cryptocurrencies.
The emergence of "rug plugs" that leave investors empty-handed propelled this year's revenue surge.
Chainalysis said that they have become the "go-to" scam in the DeFi. Developers of a new token abandon their project and take users' funds with them.
The amount of victims who did not have a single dollar of theircryptocurrencies has increased this year, with rug pulls accounting for 37% of all scam revenue.
"With the right technical know-how, it's cheap and easy to create new token on the ether or another platform and get them listed on defi exchanges without a code audit," said Chainalysis.
Code audits are common in the space, but they are not required in order to list on most DEXes.
This year's largest rug pull didn't start as a DeFi project. The CEO of a large Turkish exchange vanished shortly after the exchange halted fund withdrawals by users.
The second-largest rug pull of the year was AnubisDAO.
Business Insider has an original article.
