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- The DeFiYield app has issued its complete 2022 Crypto Scam Report.
- This special report details all the hacks and scams related to cryptocurrency in a particular year.
If we go as per DeFiYield’s REKT database, in the world’s biggest crypto scams, a total of $48.9b was lost. The amount was 500% up as compared to the year 2021. Here are the top 5 losses of 2022
Terra Classic – $40b
Terra Luna was among the biggest crypto projects of the year, which was started in May 2022. Traders sold their $USTC in a curve liquidity pool, as a consequence of which $USTC price fell. $LUNC at that time was minted swiftly as people hurried to retrieve their stablecoins. The market capitalization of $LUNC went down from that of $USTC, after which all withdrawals were suspended.
Genesis – $2.8b
Genesis disclosed that it had $175m held in an FTX account. The platform halted withdrawals. Presently, it is engaged in a dispute with Gemini which it allegedly owes $900 million.
Celsius – $1.19b
Celsius Network, a crypto lending platform which filed for chapter 11 bankruptcy in July 2022. The company disclosed a $1.2b balance sheet slippage. The project suspended withdrawals in June 2022, quoting “extreme market conditions.”
FTX – $1.0b
FTX along with its sister company Alameda Research and associate firms filed for bankruptcy, reporting a loss of capital between $1-2b. FTX disclosed that Alameda’s collateral was leveraged on FTTs, which is FTX’s native token.
BlockFi – $1.0b
BlockFi, a digital asset lender put a stay on withdrawals and went for bankruptcy filing because of its exposure to FTX and Alameda. The total liabilities of BlockFi are estimated to be between $1-10b.
Last year, the biggest losses in Crypto were reported in Centralized Finance (CeFi) and Stablecoins, accounting for the majority of the loss — $41b. Rugpulls were mostly found in the Defi exploits, estimating over one rugpull every three days. Smart contract risk is the main risk: Almost half of last year’s hacks were related to smart contracts.
In 2022, the total funds retrieved was $901m, way above $648m in the year 2021.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
