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Cryptocurrency Frauds Steal ₦5.8 Trillion Worth of Crypto In 2021

How People Are Navigating CBN’s Crypto Ban In Nigeria

The increase in Decentralized Finance (DEFI) in the crypto industry saw swindlers record a whopping sun of  ₦5.810 trillion worth of crypto in 2021.

From 2020, crypto theft rose by 516 per cent to N1.3 trillion worth of cryptocurrencies worldwide.

72 per cent of this sum were stolen funds from DEFI protocols, reports CNBC. Eighty-two per cent of losses came from scams amounting to  ₦3.2 trillion worth of crypto.

More than ₦1.2 trillion of this came from a new but very well known type of scheme called ‘rug pull’ in which developers build what seems to be legitimate crypto projects before making away with investors money .

Over $7.7 billion was stolen in cryptocurrency scams worldwide in 2021, according to a new report by blockchain analytics firm Chainalysis. That’s an 81% rise compared to 2020.

Rug pulls, a type of scam where developers abandon a project and leave with investors’ funds, became the “go-to scam” of the decentralized finance, or DEFI, ecosystem, Chainalysis wrote in its report.

In 2021, rug pulls accounted for over $2.8 billion stolen, or 37% of all cryptocurrency scam revenue, compared to 1% in 2020.

*The cryptocurrency market resumed trading activities on Friday, December 24, 2021, on a great note with a market huge cap, gaining marginally at 0.42 per cent to stand at  ₦992,000 trillion, after it rose above the  ₦20 million mark with a gain of 0.26 per cent to trade at  ₦21.50 trillion, according to a report. However, the exchange rate between the naira and the US dollar closed at  ₦414.73 per dollar at the official Investors and Exporters window.

About Author

Boluwatife Oshadiya Lagos, Nigeria
Boluwatife Oshadiya is a graduate of Mass communication with a passion for content creation and digital marketing. He aspires to become a very well known and respected member of his field of study and can be reached via [email protected]

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