Crypto Scam Revenues Up 81% in 2021
The decentralized finance (DeFi) space has seen a slew of scams over the past number of years. In total, scams in the industry have totaled nearly $7.7 billion in revenue, according to a recent report. The data was collected by Satis Group and published by Bloomberg on May 3. Satis is a market research group that provides data and consultancy services to financial institutions.
The digital assets scam cycle has proven to be a relentless and inevitable force, relentlessly driving the rise of so-called DeFi scams. Despite attempts to curb the prevalence of the practice, traders continue to be hit by individuals or groups who leverage the hype surrounding new projects in order to instigate fraud.
While decentralized finance (DeFi) offers numerous benefits to the cryptocurrency space, use cases and adoption remain limited. The lax regulatory environment has helped fraudsters take a bigger slice of the cake in the DeFi space as they are on a mission to scam investors, with scammers growing increasingly creative in executing their end goals.
Crypto scams have long been a talking point for the digital asset community in recent years. As confidence in decentralized financial services (DeFi) take off, it seems as if criminals are taking more of an interest in phishing and other techniques to defraud their audiences. This is a worrying sign that the decentralized finance sector will have to overcome.