$11 Billion Worth Of Ethereum Was Stolen Transferred Between 153 CEXs: Solidus Report

Since September 2020, according to blockchain risk monitoring company Solidus Labs, about $11 billion worth of Ethereum stolen via fraudulent tokens has gone through 153 CEXs, with the majority of these exchanges being governed by American regulators.

According to Solidus, more than 350 fraudulent cryptocurrency tokens were issued every day this year, robbing millions of investors.

Solidus’ 2022 “Rug Pull Report” shows that 117,629 scam tokens were deployed from January 1 to December 1. In comparison to 2021, when Solidus found just under 83,400 scam tokens, this is a 41% increase.

Since September 2020, about 2 million investors have lost money to these scams, which is more than the projected 1.8 million creditors who were adversely affected by the bankruptcies of the lending platforms and cryptocurrency exchanges FTX, Celsius, and Voyager.

A “honeypot,” or a token smart contract that forbids buyers from reselling, was the most widely used scam token.

A rug pull is when a person or group develops a token and artificially inflates its value before taking all the value from the project and abandoning it as the token price falls to zero.

The $3.3 million Squid Game (SQUID) token scam, which surged 45,000% in a matter of days as investors bought the hype but were unable to sell, ended with the mysterious founders allegedly fleeing with investor money, according to Solidus.

Rug pulls also harm centralized exchanges (CEXs), as many of the people behind these nefarious tokens utilize them to finance their dubious projects and cash out the ill-gotten earnings.

In the investigated time period, approximately $4 billion went to US CEXs, which was nearly twice as much as the next-most exposed CEX state, The Bahamas.

According to the survey, BNB Chain is home to the most fraudulent tokens, with 12% of all BEP-20 tokens being fake.

The ERC-20 tokens on the Ethereum network, which came in second, are allegedly scams in 8% of cases.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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