Losses From Crypto Rug Pulls Outpaced DeFi Exploits in May: Beosin

Cryptocurrency investors faced a new wave of threats in May as the amount lost to “rug pull” scams surpassed the stolen funds from decentralized finance (DeFi) projects, according to a recent report by blockchain security firm Beosin. The report highlights the escalating concern over fraudulent activities and emphasizes the need for increased caution among crypto enthusiasts.

Rug Pulls and Exit Scams Outpace DeFi Theft:

In May, rug pulls, and exit scams resulted in losses exceeding $45 million across six incidents, as Beosin’s June 1 report revealed. These incidents involve founders abruptly vanishing with investors’ funds, leaving them in financial ruin. This figure overshadows the $19.7 million stolen from 10 DeFi protocol attacks, signifying an alarming trend.

Decreasing DeFi Exploits:

Beosin’s report indicates an 80% decrease in losses from DeFi exploits compared to April. These attacks have been declining for the past two months, suggesting a potential shift in the tactics employed by hackers and scammers.

Notable Incidents:

Fintoch, a cryptocurrency project, allegedly made off with $32 million in the largest rug pull of May. Additionally, the DeFi platform Jimbos protocol fell victim to a $7.5 million attack, marking the most significant assault last month, as stated by Beosin.

Targeting Ordinary Users:

According to Beosin, hackers and scammers are shifting their focus from project parties to ordinary users. This shift underscores the importance of raising awareness about fraud prevention and conducting thorough due diligence before investing in any project.

Safeguarding Crypto Assets:

Beosin advises crypto users to enhance their anti-fraud awareness and proactively protect their investments. This includes learning about security best practices and implementing safeguards to secure their crypto assets effectively.

Dangers of Public Charging Devices:

Beosin highlights the risk associated with using shared or public charging devices for mobile phones. These devices can be potentially modified to inject malicious programs, compromising the security of private keys. The report urges individuals to exercise caution and opt for safer charging alternatives.

FBI’s Similar Warning:

The United States Federal Bureau of Investigation (FBI) previously warned against using free charging stations, such as those found at airports. The FBI’s Denver office tweeted on April 6, cautioning that bad actors exploit public USB ports to introduce malware and monitoring software onto devices. Instead, the FBI advises carrying personal chargers and USB cords for use in electrical outlets.

As the cryptocurrency landscape evolves, the prevalence of rug pulls, and exit scams present a significant threat to investors. Beosin’s report highlights the urgency of raising awareness and practicing due diligence before investing in any project. By staying informed about the latest security measures and protecting personal crypto assets, individuals can mitigate the risks associated with this emerging form of finance.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.