Most Crypto Scams Are Happening on This Blockchain

Most Crypto Scams Are Happening on This Blockchain

Cryptocurrency risk monitoring platform Solidus Labs stated that more than 10% of tokens with fraudulent characteristics reside on the native BNB chain. Less than 10% can be seen in Ethereum (ETH). The chain threat intelligence tool said Thursday it was designed to help anti-money laundering (AML) teams tackle brilliant contract fraud, which the company called “one of the biggest challenges [of decentralized finance] Defi.” and Web3”. Solidus Labs AML covers 12 chains, including Ethereum, BNB, and Polygon (MATIC). The company claims that its new risk monitoring technology enables real-time analysis of intelligent contract fraud and an off-chain view of the current state of crypto fraud.

The following has been found:

  • 12% of all BEP-20 tokens on the BNB chain have fraudulent characteristics.
  • 8% of all ERC-20 tokens on Ethereum have dishonest features.
  • Solidus Threat Intelligence detects an average of 15 newly implemented fraud attempts per hour.
  • As of October 10, 188,525 intelligent contract scams across 12 covered Blockchains have been seen.

“Data released by Solidus shows that a new pre-programmed token is created to scam users on average every 4 minutes, and illicit funds from these scams often flow and potentially get laundered through centralized crypto exchanges. It turns out that The Lower Bound Estimate of the current value of fraudulent ETH that has flowed through centralized and regulated exchanges is $910 million.

Scam token intelligent contracts, he explains, are cryptocurrencies that have been encrypted to steal investor funds. These can be deployed automatically but also easily repeated “and allow serial scammers to quickly launch thousands of low-value attacks without raising alarms with regulated exchanges, regulators, and law enforcement agencies,” the company said of “a growing list of crypto- native market abuse typologies.” Others include rug pulls, phishing attacks, and token spoofing.

Kathy Kraninger, VP of Regulatory Affairs at Solidus, commented, “Although some of the big scams and scams make headlines, like the famous Squid Games token that has cost users an estimated $3 million in lost funds, “The full picture that emerges from our data shows that the vast majority of these scams go undetected,” Solidus said in its report released Thursday that its data suggests more than 188,000 attempts in Ethereum, BNB Chain, and others Blockchains have been implemented, which he said is “far more than previous estimates.”

Meanwhile, blockchain security firm CertiK reportedly found rug heists, a type of theft that occurs when crypto project owners run away with funds raised by their investors, to scam, and Web3 in August this Year -based exploits dominated the year. However, the total was still lower than in July.

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