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Highlights
- Despite the security, the vast ecosystem of applications and websites which make up the broader crypto ecosystem contains numerous attack vectors.
- Chainalysis study revealed that hackers used traditional scamming methods to steal over US$7.7 billion from victims in 2021.
- Recently, hackers scammed potential buyers out of their Solanas for the limited-edition NFTs they were hoping to receive from Fractal.
When you enter the crypto realm, you may come across scammers who are now taking full advantage of the ongoing frenzy around cryptocurrency to con potential victims and steal their digital assets.
In spite of the security of the cryptography used to secure NFTs and cryptocurrencies, the vast ecosystem of applications and websites which make up the broader crypto ecosystem contains numerous attack vectors.
Furthermore, according to a Chainalysis study, in 2021, hackers used traditional scamming methods like "rug pull" (a criminal manoeuvre in which crypto developers abandon a project and flee with the money of investors) or exploited loopholes in crypto systems to steal over US$7.7 billion from victims.
Recently, they targeted the crypto space's youngest star, Solana.
How did scammers get their hands on Solana?
Hackers scammed potential buyers out of their Solanas for the limited-edition NFTs they were hoping to receive from Fractal, the gaming-based NFT project of Twitch co-founder Justin Kan.
Hackers took advantage of the project's popularity, exploiting a flaw in a Discord bot to send a link that emptied buyers' wallets of SOL. Scammers connected cryptocurrency wallets to the link, expecting to receive NFTs, but found their Solana cryptocurrency holdings had been emptied and transferred to the scammer's account. Tim Cotten, the owner of another NFT gaming enterprise, assessed the transaction's value at US$400 million.
Copyright © 2021 Kalkine Media®
Recent Article : Why Solana (SOL) crypto is a great investment option at present
What other scams have wreaked havoc on the crypto world?
Copyright © 2021 Kalkine Media®
Poly Network
Scammers stole US$613 million in digital currencies from token-swapping platform Poly Network in August 2021, making it one of the largest cryptocurrency heists ever. However, the hackers returned US$260 million in tokens in less than 24 hours.
The Squid Coin
Squid Game, a Netflix original series, continues to enthral viewers. And, thanks to the "Squid Game" mania, crypto enthusiasts have witnessed one of the largest scams of the decade. After investors rushed to a new crypto inspired by "Squid Game," US$3.3 million vanished.
PancakeBunny
A PancakeBunny hack took place this year on 19th May, with cybercriminals making around US$45 million through a flash loan exploit, slamming Bunny token prices by almost 96%, from US$220 to around US$10 in less than 24 hours. A flash loan is a sort of unsecured loan that requires no collateral from the borrower.
BitMart
BitMart, a cryptocurrency trading platform, was hacked for US$196 million, according to the company, which described the attack as "a large-scale security compromise." More than 20 tokens, such as BabyDoge, BSC-USD, Floki, Binance Coin, Moonshot, BNBBPay, and Safemoon, were stolen.
The last thought
The crypto market, like the share market, is both profitable and risky. However, the market is not regulated, and the decentralised structure allows scammers to target the market.
Hence, while the crypto market is looking attractive because of sudden gains, it is advisable for investors to be mentally prepared in case they get duped in the crypto world.
Related article: How to spot a fake crypto app
