11.5 billion dollars in cryptocurrency lost in 2022 due to hackers and scammers

Bitcoin’s share of illicit cryptocurrency transactions has decreased significantly due to the emergence of many other networks. Scammers and hackers favor the TRON blockchain

$11.5 billion in various cryptocurrencies were lost by their owners in 2022. This happened as a result of hackers and scammers activity. TRM Labs, a smart blockchain solutions company, conducted a study and found. That the collapse in cryptocurrency prices since 2021 had no meaningful impact on the dollar volume of related crimes.

At least $7.8 billion was invested in pyramid schemes in 2022, according to TRM Labs. And $3.7 billion was stolen from hacks. Another $1.5 billion in digital assets was spent on the darknet, a marketplace specializing in the sale of illegal drugs, analysts said.

About $2 billion of the money stolen by hackers was stolen as a result of attacks on firewalls. And which allow the transfer of cryptocurrencies from one blockchain to another. Our experts point out that criminals are also increasingly resorting to such schemes to make it harder to track the movement of assets.

Recall that in 2016, two-thirds of stolen cryptocurrencies were in Bitcoin. And in 2022, it accounted for just under 3%. According to the report, Ethereum (68%) and Binance Smart Chain (19%) dominated.

And if in 2016 Bitcoin was the only cryptocurrency used to finance terrorism. By 2022, it was almost completely replaced by TRON blockchain assets – their share was 92%, according to the report. This network became popular because of low fees. And that’s why most of the USDT stablecoin’s turnover occurs on TRON.

In May 2023 alone, hackers and fraudulent cryptoprojects stole $71 million in cryptocurrency. Also in early June, the biggest hack of the year occurred. A hacker stole over $100 million from Atomic Wallet cryptocurrency users.

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Hackers and scam cryptoprojects stole $71 million in crypto in May

Hackers stole about $16 million in nearly 60 attacks on cryptoservices. And scam cryptoprojects scammed investors out of $55 million

In May 2023, hackers, scammers and unscrupulous crypto developers stole more than $71 million in cryptocurrencies. This follows information from cybersecurity company PeckShield. At the same time, about $16 million was stolen during hacks. And scam projects (fraudulent projects) accounted for more than $55 million of losses.

According to experts’ calculations, there were 59 hacks of cryptoservices during the month. And the total amount of stolen funds amounted to $16.03 million, not including $4.13 million, which were returned by hackers on different terms.

The largest hack in May was an attack on the Arbitrum network’s liquidity protocol called Jimbos Protocol ($7.5 million). And then comes the hack of DEI’s stabelcoin issuer, Deus DAO ($2.5 million). In third place was the Tornado Cash cryptomixer incident, with losses of $1.12 million.

Most of the money stolen in May – $55 million – came from scam cryptoprojects and unscrupulous developers. The DFintosh cryptoprotocol team is suspected of stealing $31.6 million, while developers of the IPP stacking pool escaped with $14.5 million. In third place are the creators of the XIRTAM project with the theft of $3.4 million.

Our experts note that due to the popularity of meme tokens in the past month, many scam groups created dozens of cryptocurrencies on the theme of popular memes. Scammers artificially inflated their token prices. In order to attract investors. And then absconded with the funds of trusting users.

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Creators of Fintoch crypto project were accused of stealing $31.6 million from clients

The Fintoch project team has withdrawn its assets and announced. That due to the transition to the new network in the coming days on the platform there may be temporary problems with the deposit or withdrawal of funds

The creators of the crypto project Fintoch stole 31.6 million USDT from customers, on-chain detective ZachXBT reported. The platform’s team withdrew funds to various addresses on Tron and Ethereum networks. Users then began complaining that they couldn’t access their assets.

The Fintoch platform positioned itself as a project of Morgan Stanley, a multinational corporation. And it provided diversified financial services. Also among other things, it offered a 1% daily return on investment. The platform assured that HyBriid’s exclusive blockchain security technology allows users to “enjoy blockchain investments with zero risk.

ZachXBT recalled that Morgan Stanley previously said it had nothing to do with Fintoch. And the Singapore government had warned investors that the project was falsely presented as licensed.

The blockchain analyst also revealed that someone like Bobby Lambert. Who is listed as the CEO on the project’s website, does not actually exist. His role was probably played by actor Mike Provenzano, ZachXBT suggested, attaching a photo.

Also the Fintoch project was widely advertised and held large-scale conferences and other events in various countries. For example in Vietnam, Malaysia, South Korea, UAE and Indonesia (in Bali).

Fintoch page in the Medium social network is now closed. And in the May 24 telegraph channel of the project was published an announcement of the upcoming launch of the public network FTC. According to the announcement, there will be a “migration and deployment of system data” in the coming days.

Our experts warn that it is necessary to check each project very carefully. And if there is news that the company is cheating somewhere, it should be the first signal to withdraw your money from such a project.

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Hackers stole $15 million in cryptocurrencies through the fake HitBTC cryptocurrency exchange website

A blockchain analyst warned about a fake page of the HitBTC platform, on which scammers use phishing links to empty users’ cryptocurrency wallets

Hackers stole more than $15 million in various cryptocurrencies through a fake website. Which mimics the HitBTC cryptocurrency exchange page. This was reported by a blockchain security analyst at SlowMist. According to the company, scammers are stealing various cryptocurrencies, including bitcoin, Ethereum and USDT. They do this through a fake website that looks similar to the original exchange portal.

Analyst identified and published four cryptocurrency addresses of the attackers. He also explained that he discovered three ways in which hackers gain access to users’ wallets on this site.

The fake page may prompt users to verify the wallet’s connection. After a user clicks the Confirm button, hackers gain access to USDT tokens.

The second option was to go to the page for depositing funds, which is identical to the real page on the exchange. But in the field for the deposit address entered data hackers. In this case, they rely on the fact that the information in the standard fields will not be double-checked by the account owner.

In the third case, the scammers take advantage of the fact that the sidebar to sign the transaction on the site pops up automatically. And with the data already completely filled in, which are also usually not double-checked. When the user clicks on the transaction confirmation button, the hackers gain access to the assets.

Our experts point out that in February of this year, hackers spoofed the website of a major cryptocurrency conference. Where they offered users to connect MetaMask wallets and make a transaction that debited funds. To promote their site, the scammers even paid for advertising on Google. And rose to second place in search for a while.

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One scammer launched 114 scam meme tokens in 45 days

Blockchain researchers note the “incredible diligence” of the developers of scam dubious coins. And they note that every day several new cryptocurrencies are released from the address scammer.

One scammer launched 114 scam meme cryptocurrencies in the past 45 days, a blockchain researcher under a nickname ZachXBT reported on Twitter. According to him, each time the funds received as a result of the fraudulent scheme were sent to the same address.

“I suspect that there are even more of them [issued cryptocurrencies]. These are just the ones sent to the same address,” ZachXBT added.

He attached a diagram that shows the “scam tokens” with names. Which refer to famous brands, such as KingKong, BBC, TrumpMind, Arbitreum, Mozilla, SpeechAI, PEPAPIG, are redirected to one address on the Coinbase exchange.

Users on social media noted that the scammers are acting like “criminal geniuses,” sending funds to a large centralized exchange, thereby giving themselves away. ZachXBT suggested that Coinbase had not detected the fraud because the transfers were coming in small amounts.

On April 27, a social network user under the pseudonym Guru also reported another similar case. In doing so, pointing to the address of a cryptocurrency wallet, which allegedly launched 2-5 memcoins daily for almost two years in a row.

“These developers have an incredible work ethic. Make sure you take note of their address on Etherscan. So you don’t fill their pockets with your money. Absolute insanity,” he wrote.

Our experts point out that scammers take advantage of the fact that meme tokens are popular in the cryptocurrency community. And in doing so, despite the fact that they do not bear any practical benefit. For example, new meme coins were launched in mid-April. Which are associated with famous Internet memes – Pepe the frog and Wojak the character. Their value rose by hundreds of percent after the launch. And now dozens of projects are launched every day that use PEPE, etc. in the name. Be careful 99% of these projects will be shut down within days of launch.

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Hackers stole $211 million worth of cryptocurrency in March

Hackers have stolen a total of $255.8 million in cryptocurrencies and another $31.5 million in NFTs since the beginning of this year

Hackers made 26 hacks of crypto projects in March. In doing so, they stole $211.5 million in cryptocurrencies, according to PeckShield. In addition, attackers stole $10.9 million worth of NFT.

The largest amount in cryptocurrency was stolen in the attack on DeFi-platform Euler Finance. About $197 million was stolen here, but the hacker later apologized and returned $182.7 million to the project.

The second largest loss was the SafeMoon ecosystem hack. Hackers there withdrew about $9 million worth of assets, followed by the ParaSpace protocol attack with $5.2 million in losses and the hack of the General Bytes ATM network, which claimed $1.7 million.

A total of $255.8 million worth of cryptocurrencies were stolen in the first three months of this year. $8.8 million was stolen in January and $35.5 million in February.

In addition to cryptocurrencies, $10.9 million worth of NFTs were stolen in March. Half of the stolen tokens were sold on trading floors within the first two hours of the theft. About 74.9% of the NFTs were sold on the Blur Marketplace, while 19.5% were sold on OpenSea.

Since the beginning of the year, a total of $31.5 million worth of NFTs were stolen. In January they stole $4.4 million worth of tokens, in February – $16.2 million. Our experts recommend everyone to be careful and closely study the site before you connect your wallet.

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Cryptoprojects accused CoinMarketCap of airdrop scams

CoinMarketCap chose winners and sent them tokens. As a result, they only made it to a few wallets and were sold, collapsing prices for those projects. Crypto-Upvotes expert review.

Cryptoprojects claim that advertising campaigns from CoinMarketCap (CMC) were scamming and caused their token prices to fall. The developers accuse CMC of foul play in promoting their airdrops. And they claim that cryptocurrencies ended up in only a few wallets, indicating that the system could be manipulated.

CoinMarketCar is one of the largest aggregators of cryptocurrency market data, launched in 2013. This service collects information from most trading venues, tracking key metrics of tokens and crypto exchanges. In 2020, Binance bought this platform.

Blockchain project SaTT reported that a promotional campaign on SMS was paid for in December 2022. It ended with 84% of the issued tokens reaching just 21 wallets. As part of this promotion, 25,000 winning addresses were to receive 4,000 SATT each.

SaTT said that shortly after Airdrop, 20,900 addresses “automatically transferred tokens to 21 wallets.” Which sold those tokens a few days later, generating about $142k. As a result of this sale, the SATT price fell 70% in 10 days – from the end of Airdrop on December 1 until those wallets sold their tokens on December 10.

Other projects also faced a problem with Airdrops on CoinMarketCap

The TokenBot project faced a similar problem. Its founder Shaun Newsum said that he also held an airdrop on CMC. According to him, the platform identified 30,000 winners of the airdrop. TokenBot sent out its tokens to a batch of 4,000 winners to begin with. And about 3,300 of them ended up sending funds to a single wallet. Newsum said TokenBot lost about $20k as a result of the incident.

“Obviously, some person figured out how to play on CoinMarketCap. <…> If we had sent a big batch, this whole airdrop would have been a complete disaster,” said the head of TokenBot.

However, Newsum said he had received an apology from CMC. And he was told that the company was investigating the situation and would return with an updated list of project winners.

The SaTT project team claims to have uncovered 18 other token and NFT eirdrop projects totaling $6.6 million, which have been held at CMC since July 2022, and were also allegedly “infected with scams.” These included projects such as TopGoal, OwlDAO and AgeofGods. SaTT suggested that either hackers had created multiple fake accounts on CMC, or that these were internal actions of this platform.

Explanations from CoinMarketCap

A CMC official responded to the allegations by saying that at least four of the projects named by SaTT had not yet distributed awards. And therefore, it is “impossible” that they have encountered “malicious” activity. He also noted that other than SaTT, AgeOfGods and TokenBot, no one else had complained about such problems.

However, a CMC official admits that there is a bot problem. According to him, the platform team is constantly working to improve its systems to limit this problem. To prevent bots from participating, CMC uses CAPTCHA verification and email verification. It also plans to integrate two-factor authentication.

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Cryptoscammers increased their activity on YouTube six times

Analysts estimate that the number of videos on YouTube offering quick money has increased by 500% since last year. But in fact it is Cryptoscammers who steal users’ cryptoassets. Crypto-Upvotes Experts Review

Cryptoscammers have posted six times more videos on YouTube aimed at stealing users’ assets than last year. That’s according to a report by Certik (a Web3 and blockchain security company).

Analysts investigated a popular type of scam where users are offered easy earnings on social networks. To do this, they should download a special bot program according to a video instruction on Youtube. This bot is supposed to bring profit, but in fact it deducts funds from victim’s cryptocurrency wallet.

In the course of their research Certik analyzed YouTube for videos mentioning the phrase “front running bot”. And they found that in a sample of 232 videos, 84% were scam videos. The selected videos started circulating last year. But this year their number increased by 500%: analysts found 28 such videos in 2021, and 168 in 2022.

According to the report, many of these videos are immediately identifiable as scams by their titles: “MAKE 10X A DAY!!!”, “Uniswap Front Running Bot 2022 – EASY TUTORIAL (Huge profits)”, “$15,000 Front Running Crypto Bot Leak! – 50X HUGE RETURNS!” and the like. Certik noted that all of these videos have common themes: free bot and huge profits.

Analysts warned that you should never run programs from unverified sources. As well as those whose action is not fully understood. Also, you should be careful with any trading strategies or techniques which promise inflated profitability.

The other type of scams on YouTube is fake videos with famous people. In September, scammers took advantage of the fact that Apple was holding a new phone presentation and launched parallel broadcasts promoting cryptocurrencies allegedly on behalf of their company.


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