NEW YORK–(BUSINESS WIRE)–#Blockchain—DeFiYield.app has released their full 2022 Crypto Scam Report. This special yearly report covers the largest cryptocurrency hacks and scams of the year. We keep you safe and informed.
According to DeFiYield’s REKT database, the world’s largest crypto scam database, $48.9b was lost, over 500% increase from 2021. Here are the 5 biggest crypto losses of 2022:
1. Terra Classic — $40b (May 8)
Terra Luna ecosystem one of the largest crypto projects to collabs began in May 2022.
Traders sold off $USTC in a Curve liquidity pool, leading to $USTC depreciating. $LUNC was then minted rapidly as people rushed to redeem their stablecoins. Market cap $LUNC fell below $USTC, preventing redemptions.
2. Genesis — $2.8b (November 10)
Genesis revealed that it had $175m trapped in an FTX account. Withdrawals were halted on the platform.
This included customer funds deposited in Gemini’s Earn program and loaned to Genesis.
3. Celsius — $1.19m (CeFi, July 13)
Celsius Network, a centralized exchange and lending protocol, filed for bankruptcy in July. The company revealed a $1.2b balance sheet deficit.
The project halted withdrawals a month prior, citing “extreme market conditions”.
4. FTX — $1.0b (November 11)
FTX, Alameda Research, and affiliated companies declared bankruptcy, with funds lost estimated between $1-2b.
November revealed that Alameda’s collateral was dominated by FTX’s native token, $FTT. Suspicion that FTX was insolvent, prompted customers to withdraw billions from the exchange. FTX then declared bankruptcy.
5. BlockFi — $1.0b (November 11)
Crypto lending platform BlockFi halted withdrawals and filed for bankruptcy due to exposure to FTX and Alameda.
BlockFi estimated liabilities between $1-10b.
DeFi Exploit Trends
In 2022, greatest losses in Crypto were in CeFi and Stablecoins, with a staggering loss of over $41b. Rugpulls were the most common DeFi exploit, averaging more than one rugpull every 3 days.
Smart contract risk remains a key threat: Almost half of 2022’s exploits were smart contract-related.
Funds recovered this year: $901m, up from $648m last year.
Search for any crypto scam in the DeFiYield’s REKT Database.
Conclusion
DEFIYIELD is dedicated to helping investors navigate this complex and constantly evolving space, with tools that keep you safe and informed.
About DEFIYIELD
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Contacts
Sonali Giovino
sonali@defiyield.app