MultiversX Tracker is Live!

$60 Billion in Crypto Fraud: How Pig Butchering and Rug Pulls Steal Millions

Finance Magnates

Cryptocoins News / Finance Magnates 10 Views

Since Bitcoin launched, crypto scams have grown more frequent and complex. They now go beyond basic phishing or giveaways, involving even well-known companies in fraud like rug pulls.

UPay reviewed 236 major crypto scam cases, revealing losses exceeding 60 billion dollars, though this likely underestimates the total damage. The largest single loss was 40 billion dollars from the Luna Yieldcollapse. The most common scam types identified include 112 cases of fraudulent trading platforms, 46 romance scams, 39 pig butchering schemes, 29 rug pulls, and 28 Ponzi schemes.

Romance and Pig Butchering Scams

The report highlights several common scam methods. Pig butchering and romance scams involve building fake relationships to lure victims into fake crypto platforms with inflated balances. Victims can make small withdrawals initially but are later blocked and pressured to pay fake fees. One victim lost over 500,000 dollars after believing her account had grown to 1.2 million dollars.

Brand Impersonation and Fake Trading Platforms

Fake platform and brand impersonation scams use lookalike websites and fake support to mimic trusted companies like NYMEX or Coinbase. A California man lost 650,000 dollars after being shown a fake 10 million dollar balance by a scammer posing as a trader.

Fake Profits with Hidden Fees

Withdrawal traps show fake profits but require victims to pay fees like taxes before withdrawing. One victim lost 2.9 million dollars after being asked for a 1.5 million dollar tax fee; another lost 1.5 million dollars in similar fake fees.

You may find it interesting at FinanceMagnates.com: SEC Targets “Pig Butchering” and Romance Scams Leading to “Goodbye to Your Money”

Impersonated Advisors

Impersonated advisors or traders use fake trade screenshots to gain trust and convince victims to share wallet details or open accounts. One man lost 92,000 dollars after scammers showed a fake 200,000 dollar balance and demanded an 87,000 dollar tax fee.

Fake DeFi Platforms

Fake DeFi platforms mimic real ones, showing fake profits to encourage reinvestment but demand large risk deposits or penalties when withdrawing. One victim lost 400,000 dollars after paying a 300,000 dollar risk deposit and 100,000 dollar penalty.

Rug Pulls: Disappearing with Millions

Rug pulls involve developers promoting crypto or NFT projects, raising funds through token sales before disappearing. The report recorded 31 rug pulls with losses over 100 million dollars. The Bored Bunny NFT project raised 21.1 million dollars before its team vanished.

This article was written by Tareq Sikder at www.financemagnates.com.
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.



Comments