Rug Pulls and Scams Drained Over $20 Billion Since 2011

Cryptocurrency and non-fungible token (NFT) thefts have surged in recent years, leaving investors grappling with losses that have surpassed a staggering USD $26 billion to date.

According to a recent report by Comparitech, the influx of stolen funds dwindled in 2023, signaling a potential reduction in cybercriminal activities. However, the cumulative sum of stolen funds continues to rise.

In 2022, hackers stole over USD $3.5 billion in crypto and NFT heists. The number of reported scams and rug pulls has also skyrocketed, from 10 incidents in 2017 to 364 in 2022.

​

Number of scams/rug pulls per year

The amount of losses from crypto hacks and exploits has steadily declined in 2023, but the number of exit scams has doubled. Exit scams are characterized by individuals or entities launching crypto projects, accumulating value, and then vanishing.

Certain blockchain platforms are disproportionately affected by security incidents. BNB Chain, for instance, recorded over 100 security violations, resulting in losses totaling USD $71 million. Ethereum saw 55 incidents culminating in USD $66 million in losses, while Polygon faced four cases, leading to approximately USD $2.4 million in losses.

Bitcoin has remained resilient to hacks and exploits, thanks to its decentralized design and immutability.

In July 2023, crypto hacks and exploits surged to unprecedented heights, with losses exceeding USD $300 million. As of July, exploits, exit scams, and flash loan attacks had drained USD $580 million, USD $123 million, and USD $255 million, respectively, year-to-date. In total, the cumulative losses from hacks and exploits from the beginning of the year to July have surged to USD $961 million.

​

Amount stolen at time of theft by year (USD)

The scams and rug pulls are explained in detail in the report

Src: The Report