• Sat. May 21st, 2022

Cryptocurrency crooks brought victims $ 7.7 billion worth of digital currency in 2021: report

ByHazel R. Lang

Dec 21, 2021

New Delhi: Cryptocurrency crooks brought victims $ 7.7 billion worth of cryptocurrency in 2021, an 81% increase in losses from last year, according to a new report released on Monday. According to Blockchain analytics firm Chainalysis, nearly $ 1.1 billion of the $ 7.7 billion was attributed to a single scheme that allegedly targeted Russia and Ukraine. Cryptocurrency Prices in India Today (December 21, 2021).

A key source of the increase in cryptocurrency scams in 2021 was the “carpet draws”, where developers of a new cryptocurrency disappear and take supporters’ funds with them, ZDNet reports.

Carpet draws accounted for 37% of all cryptocurrency scam revenue in 2021, at $ 2.8 billion.

“As the largest form of cryptocurrency-based crime and targeted only at new users, scam poses one of the biggest threats to the continued adoption of cryptocurrency,” said Chainalysis.

The report found that the number of active financial scams increased from 2,052 in 2020 to 3,300. Scams have also increased in line with the rise in the value of popular cryptocurrencies such as Ethereum and Bitcoin.

The most important point to remember is to avoid new tokens that have not been code audited. Code audits are a process by which a third party company analyzes the smart contract code behind a new token or some other DeFi project, ”Chainalysis said.

(The above story first appeared on LatestLY on December 21, 2021 at 8:40 a.m. IST. For more information and updates on Politics, World, Sports, Entertainment, and Lifestyle , connect to our website Latestly.com).

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