Cryptocurrency scams are always on the rise and are getting more sophisticated each year. 2022 wasn’t an exception to this.
In this study, we looked into cryptocurrency scams in 2022 and found the following data:
This section contains a generalized list of the biggest crypto scams and hacks in 2022 ranked by the amount of money stolen ($100 million and above).
|Affected entity / scam||Amount stolen or lost|
|1. FTX||$1-$2 billion|
|2. Axie Infinity’s Ronin Network||$615 million|
|3. Wormhole crypto bridge||$320 million|
|4. JuicyFields.io scam||$273 million|
|5. Unique-Exchange.co/PARAIBA world scam||$267 million|
|6. Nomad cross-chain bridge attack||$190 million|
|7. Beanstalk DeFi project||$182 million|
|8. Wintermute hack||$160 million|
|9. Elrond blockchain exchange hack||$113 million|
|10. The OmegaPro world scam||$106 million|
|11. Harmony Horizon Bridge hack||$100 million|
|12. Mango Market crypto trading platform||$100 million|
Below you can find more information about the above cases:
The total cryptocurrency scam revenue for 2022 is low compared to 2021. However, this can change as the year comes to an end. The drop in revenue can be attributed to several factors in the industry.
So far, there have been a few substantial cryptocurrency scams. Few people are falling for cryptocurrency scams as compared to other years. This is also due to the fall in prices for various crypto assets.
Like 2021, most cryptocurrency hacks and scams in 2022 result from attacks and other threat actors taking advantage of flaws and vulnerabilities in DeFi protocols, exchange platforms, and blockchain bridges.
Rug pulls, generally, exit scam is a strategy where a crypto scammer starts an initiative to raise funds for a crypto token/project promising significant returns for the investors and unsuspecting crypto users.
After roping in a substantial amount, the scammer abandons the project, takes all the funds, and vanishes.
Flash loans allow crypto users to borrow digital assets without collateral – usually, the loan is paid in the same transaction block. The process takes a few seconds once the loan is processed.
Cryptocurrency scammers use flash loans to buy all governance tokens in a project, allowing them to withdraw all of the funds since they have the largest vote.
Scammers can also use flash loans to manipulate the value of crypto exchanges and tokens.
Like the ‘Tinder Swindler,’ in crypto romance scams, the con artist manipulates victims in dating/social media apps to invest in bogus crypto projects.
Ultimately, the victims lose significant money/crypto to the scammer. Statistics show that cryptocurrency romance scams will be on the rise in 2022.
Cryptocurrency scams and related fraudulent activities are not plummeting anytime soon.
You can protect yourself by; using established cryptos and tokens, avoiding cryptocurrency projects that guarantee significant returns, and never getting crypto investment advice from dating sites and influencers.