Cryptocurrency Scams Stole $7.7 Billion in 2021, Report Says

Crypto scammers ripped off over $7.7 billion worth of cryptocurrency in 2021, up 81% from a year ago, according to a new report.

One scam, Finiko, a Ponzi scheme primarily targeting Russian speakers throughout Eastern Europe, netted more than $1.1 billion from victims, the blockchain analysis firm, Chainalysis said.

A big factor this year was the emergence of rug pulls, the firm said, a relatively new type of scam common in the Decentralized finance, or DeFi, ecosystem, where developers of a cryptocurrency project — typically a new token — abandon it unexpectedly, taking users’ funds with them.

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