Crypto exchange WazirX has published its Transparency Report for the period between October 2021 and March 2022. Among other findings, the report shows that about 95 percent of the scams reported on WazirX were money market ones, and only 4.5-5 percent of the cases were related to blockchain and virtual digital assets (VDA).
As per the second edition of the exchange’s bi-annual Transparency Report, Ponzi schemes and social engineering scams were most common, accounting for about 40 percent of the total scams during the period.
About 25 percent of the scams were related to phishing/airdrop, and another 25 percent were impersonation scams. Meanwhile, 5 percent were related to identity falsification/identity theft. The Mumbai-headquartered exchange has blacklisted 17,218 accounts, up by 19 percent compared to April 2021-September 2021.
The report highlighted the following types of scams that took place in the Indian VDA space:
Impersonation scams:
In these scams, the imposter poses as a famous and credible individual from the VDA industry and demands money.
In a recent case, an imposter tried to dupe investors by creating a telegram channel with fake profiles of crypto-exchange founders. As a result, a request was registered with the platform to take down the channel and related fake profiles. “Our legal team has proactively coordinated and supported LEAs on several requests regarding impersonation frauds,” WazirX noted.
Social engineering scams: Under pretexts ranging from…
