Unprecedented Wave of Web3 Crypto Scams: $150 Million Lost in One Week of June

Unprecedented Wave of Web3 Crypto Scams: $150 Million Lost in One Week of June

In the final week of June, the cryptocurrency market experienced a significant theft of nearly $150 million, primarily attributed to hacks and scams related to Web3 crypto. SlowMist’s weekly security report provides detailed information on the specific projects that were impacted by these scams during June.

The market faced significant challenges in June, particularly during the final week when four projects encountered hacks, scams, and rug pulls. These unfortunate incidents affected the following projects: Shido, Ichioka Ventures, an undisclosed company specializing in nose wrinkle identification for dogs, Chibi Finance, and Biswap.

The losses incurred by these projects were as follows: Shido lost $238,500, Ichioka Ventures suffered a loss of $21 million, the unnamed nose wrinkle identification company faced a devastating loss of $127 million, Chibi Finance saw $1 million stolen, and Biswap experienced a loss of $50,000.

The majority of the losses, totaling $127 million, can be attributed to the blockchain company that claimed to identify dogs by their nose wrinkles, which turned out to be a Ponzi scheme. In addition, the Ichioka Ventures project was also revealed to be a scam. The remaining incidents were categorized as hacks.

One of the recent hacking incidents involved Themis, which suffered a loss of $370,000. On the other hand, Manta Network experienced a Twitter account hijacking but did not incur any financial losses. It is important to note that there might be additional unreported incidents within the market.

The unfortunate trend of security incidents in the crypto market persisted in June, adding to the ongoing challenges faced by the industry. In the first six months of the year, an astounding $656 million has been stolen from the web3 space.

However, there is a silver lining, as approximately $215 million of the stolen assets have been successfully recovered. This marks an improvement compared to the previous year, where only 8% of the total stolen funds were able to be reclaimed.

Phishing attacks and rug pulls remain prevalent as some of the most frequent incidents in the market. This trend, which emerged in 2022, continues to plague and victimize many users with these types of attacks.

Furthermore, the reports indicate that scams and hacks persist as ongoing issues in the market, with new trends emerging as well.

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