- The blockchain risk monitoring firm Solidus Labs released the 2022 Rug Pull report.
- The report claimed since September 2020, nearly two million investors have been scammed.
- As of 1 December 2022, 117,629 token scams were carried out in 2022, noted the report.
The blockchain risk monitoring firm Solidus Labs has released the 2022 Rug Pull report which reveals that an average of 350 crypto scam tokens were developed per day, to defraud millions of investors.
Since September 2020, nearly two million investors have become victims of these scams. However, this figure is relatively smaller than the 1.8 million users who were affected by the bankruptcy of FTX, Celsius, or Voyager Digital.
As of 1 December 2022, 117,629 token scams were carried out in 2022, which is 41% more than what was the last year with only 83,400 scam tokens.
With 12% of BNB’s native BEP-20 tokens being fraudulent, BNB Chain witnessed the greatest number of scam tokens. The Ethereum network stood second, with 8% of its native ERC-20 tokens being forged.
As per the report, the $3.3 million Squid Game [SQUID] token scam was the biggest honeypot scam. A honeypot scam is one that has a smart contract that does not allow buyers to resell.
The report further revealed that since September 2020, Ether [ETH] tokens worth $11 billion were stolen from scam tokens through 153 centralized exchanges (CEX). Note that these exchanges are supervised by US regulators.
In the analyzed frame of time, nearly $4 billion dollars flowed to the United States’ CEXes. This amount was approximately twice that of the second-most vulnerable CEX jurisdiction, the Bahamas.
Recently, US regulators had charged social media influencers of Twitter and Discord in an alleged $100 million “pump and dump” scheme.
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