Topic: DeFi the decentralized ways of scam (Read 468 times)

Another DeFi hack

DeFi protocol Beanstalk loses $180M in exploit, hacker gains $80M


Twitter
@BeanstalkFarms was exploited in a flurry of txs (https://etherscan.io/tx/0xd09b72275962b03dd96205f8077fdc08bec87c0ebd07e431aadc760f31f34b01 and https://etherscan.io/tx/0xcd314668aaa9bbfebaf1a0bd2b6553d01dd58899c508d4729fa7311dc5d33ad7),
leading to the gain of  $80+M for the hacker (The protocol loss may be larger), including 24,830 ETH and 36M BEAN.

Although the group has made its identity public, there are also some projects that are still unreliable and they have scammed a lot of money. so sad

Scams are happening right now all in the name of Decentralisation from DeFI projects, it's expected that teams will be anonymous all in the name of Decentralisation again, I've said this few times before that freedom is what gives power to enormous crimes now tell me how centralised projects won't progress? 😂😂😂

Scammers are everywhere, even equipping them with sufficient knowledge to participate in the crypto market is still not enough.

Another DeFi exploit

Li Finance protocol loses $600,000 in latest DeFi exploit

$600000 stolen from 29 users' wallets.

Among the stolen tokens were USD Coin (USDC), Polygon (MATIC), Rocket Pool (RPL), Gnosis (GNO), Tether (USDT), Metaverse Index (MVI), Audius (AUDIO), AAVE (AAVE), Jarvis Reward Token (JRT) and DAI (DAI).

Another DeFi exploit

‘Unlucky’: Agave and Hundred Finance DeFi protocols exploited for $11M

Agave and Hundred Financial have paused operation since the hack, investigation about the exploit continues. The hacker stole approximately $11 million in Wrapped ETH, Wrapped BTC, Chainlink, USDC, Gnosis, and Wrapped XDAI.

This is the 5th DeFi exploit I know about this year 2022.

Another DeFi exploit: hackers stole $3 million DAI and Ether

Hackers get away with $3M worth of DAI and Ether

[quote author=

PeckShield which is a  DeFi analytic firm tweeted that:

[quote author=https://mobile.twitter.com/peckshield/status/1503632734299701250ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1503632734299701250%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fdeus-finance-exploit-hackers-get-away-with-3m-worth-of-dai-and-ether]

Deus Finance was exploited in https://ftmscan.com/tx/0xe374495036fac18aa5b1a497a17e70f256c4d3d416dd1408c026f3f5c70a3a9c, leading to the gain of ~$3M for the hacker (The protocol loss may be larger), including 200,000 DAI and 1101.8 ETH

[/quote]

This should be the 4th DeFi exploit.

Latest DeFi bridge exploit results in $4.4M losses for Meter

https://thecryptotribe.com/latest-defi-bridge-exploit-results-in-4-4m-losses-for-meter/


Two DeFi hack in January, another DeFi hack again at the beginning of February, which means in 2022, 3 DeFi hack have occurred.

Another DeFi hack

Wormhole token bridge loses $321M in largest hack so far in 2022


Twitter




This is the highest DeFi hack so far in 2022 and the second largest DeFi hack.

All in the name of 'decentralization' more crimes are been committed by scammers but honestly even before decentralized and blockchain become a thing scammers are already everywhere, it's in human nature so no matter what solution you bring to the table scammers will use them to their own advantage.

In that case, I will no longer ask whether all those who believe in such things deserve what will surely happen to them, and that is that they will be scammed - but I will say that they deserve exactly what they have chosen - an old saying says "you will reap what you sow". In that case, anyone who is scammed should not seek help from the authorities, but most do nothing anyway, so there is a vicious circle in which the authorities turn their heads the other way until most pretend that nothing bad is happening.

I have to start taking pictures in front of my computer every day, so in a few years I will sell those pictures as NTF and make millions

And when the government will move towards this the first ones to protest will be exactly crypto users who will see this as another infringement on their rights.

There is one office that has always talked about laws, our beloved "crypto mom", and her position is actually the opposite of what you're praying to happen and starts with this, which is aimed more at protecting the developers than the buyers.
https://www.sec.gov/news/public-statement/peirce-statement-token-safe-harbor-proposal-2.0

Right now there are thousands of poeple with loads of money who don't want any regulations as they benefit from those, there are millions of buyers who want to buy what they want without somebody else caring, and there are a few who are against this whole ICO>Defi>Meta scams but who aren't actually involved in it, so our boycott would mean zero.
That's why I told you, not going to happen! 

As far as punishment is concerned, I still stand behind the fact that most online crimes are punished very lightly, which sends the message that such crime pays off. What I actually mean when I mention greater government involvement are laws and regulations that could declare DeFi, ICO, NTF, and similar nonsense illegal - not only in the sense that those behind it will be found guilty if caught, but also in the sense that anyone who uses it will be equally responsible. The average person still blindly follows the law, and if something is illegal he will not touch it even with a long stick.

On the one hand, I understand people who want to make a quick profit and make a lot of money - but I don't realize that they don't use their brains at all. Is it perhaps too harsh to say that they deserve what happened to them?

Nothing new, the type of Decentralisation that DeFI projects gives is just like that of privacy coins and projects with anonymous team members, it's always about no team information and there are projects with anonymous team that still exists and working well till date, God gave humans the freedom to choose yet many still dwell in sin, it's not Decentralized fault

This is one of the most valuable reply, you pretty much didn't left anything more to say. Because scammers/hackers target is now nft. Dex is very innovative and something to look after yeah it has lot of flaws but come on generalizing things negatively and ignoring the positive side is very wrong. Scammers will always find a way like even after centuries discrimination, racism still exist terrible human beings will always find a way so it is our duty to try to make things right and find a way to improve things.

I feel like this is exactly the reason why the history has been like this and why things aren't going to change. Everyone who gets into these things sees them as a bet, they have chance of winning a prize which is not zero so they keep making the bet even though the house (those who created the garbage) always wins while they lose majority of their bets and they are in a total loss.

Yeah but I don't totally agree with your perception here ...
Staying indoors doesn't stop anyone from being robbed, it only reduces the frequency of getting into their traps at all times ..
 I'm not saying we should totally get confused with this now but if someone programmed and made syncronized options for your personal wallet then it means it could probably be reversed by some smart cyber theft, with or without your priv keys yeah.
Let's always be alert all the time because I know how it feels when you loose huge coins that you went through alot just to gather up.

to be honest, i'm not 100% sure about DeFi, NFT or Metaverse....Many people think these three trends are a toll road to wealth, in fact, pretty sure almost all of them haven't made a profit until now.  do in-depth research before making a decision, if you are desperate then bet money which you can afford a loss.

Using your personal wallet would eliminate the risks of getting scammed but if you buy into all the crabs out there that involves connecting your wallets to anything that comes out and calls themselves decentralised platforms, web 3 etc you're no smarter than those making use of centralized wallets. Your wallet should always stay private and that's only when you'll be secured. If you have interest with interacting with any of the dApp, create a wallet specifically for that purpose. I won't trust any of them to be totally secure not forgetting all the hacks/exploit ongoing.

Yes, you are right now, three or four things are extremely popular in the market, and they are known as DAO, Metaverse, Gaming, and Web 3.0. is the name which is trending in the market and a new project comes in with the face of that project. They are going to create the next generation's or next biggest scamming record ever. If 2021 was the biggest scammed year ever, then 2022 will break those records and every year will break those previous years' records. If you can't believe it, mark my word. If we made strong security, then they were going to break with other smart ways. The only thing that blockchain or decentralised promises us is that if we want to stay safe, we have to be our own wallet. What might that save us? What do you think CryptopreneurBrainboss am i right?

Not going to happen.
In the first place in most cases, even the victims don't react properly by even complaining, the whole mess has turned into a gambling game where you bet on 5-10 numbers in the roulette, and if one hist the jackpot you're happy if not, you try again. The number of scams has grown so much poeple are just accepting it, I've seen tens of posts of poeple getting scammed directly with fake mining gear shops and most of them just brush aside the loss and say they've learned something, 1 in 100 actually goes and makes a complaint to the police. The fake girl trader who picks victims on tinder? Never heard of somebody actually willing to go further with legal actions after being scammed.

And with their ICOs and DEFI is even hard to make a case against, they could simply hold the sale and then do just minor work on the "project" letting it fail, you won't be able to get a life sentence for negligence, and if you change the laws that way you probably would end up putting 90% of the management teams of all companies in prison.

The scammer knows this, while you might get rid of some low-level ones with the bigger ones it's hard to do so, and those are the ones that take millions out of the pockets of foolish investors. Was EOS a scam? Would/Could you send someone to prison for it?

That is true, they are not, I noticed the more another altcoin invention, the more the scam. DeFi is decentralized in a way scam can be possible and also centralized in a way hack and exploit can be possible. Faulty makeup.

I will say so too, let us hope it will not be faulty like DeFi, I read almost biweekly about new DeFi scam and exploits.

yep there bunch scam DEFI because is super easy to make u can buy template online and copy smart contract in everywhere, to avoid this we need educate ourself before start investing

and actually there is alot when memecoin and other shit coin got hype and now play to earn and metaverse project flooding the chain and only one or two that really good project

be safe out there guys keep dyor 

They took Bitcoin as a base and on it, or perhaps better said around it, began to build almost perfect and very appealing ideas to the masses. It's amazing that it's so easy to convince people that something is good and makes sense and they invest money in it without even understanding what it's about.

I often wonder who is most to blame in this story - those who invent and put such things into practice, or those who believe in such fairy tales? Perhaps the authorities should take these matters a little more seriously, especially in the area of penalties for those caught setting an example to others. In some countries, you can steal millions online and get 2-3 years in prison, which is equivalent to punishing someone who broke into a store or private property and stole some technical goods worth several thousand dollars.

Scammers never stops, they just pick the trending technology so that more people can be attracted so more money they can make. Many people invested on such projects without even knowing what it is and hownit works. Since the market is decentralized and unregulated sonits easier for the scammers to scam the stupid people.

Cant argue with that thoughts but it ls literally happening anyway. Scams evolve in such way which based on what is the current trend or hype. Even though defi isnt famous before there are platforms on altcoins doing this already and others just copied the process and used it for scam. Personally I am defi investors and I knew the risk. Cant say its totally scam but its been abuse by those who are greed including start up projects and notorious scammers. But if you only used those top defi product, youll see the beauty of it.

History was something like this:
- Bitcoin was created and this invention brought a new technology that was very useful.
- Some developers decided to expand the technology and by changing variables create new cryptocurrencies.
- Bitcoin price kept going up and it attracted a lot of wanna-get-rich-overnight type of people.
- Some of them could code and realized bitcoin is open source so they started copying (forking) bitcoin and creating copycatcoins. These coins took a lot of effort to create and the profit they could make were small since they too had to mine the shitcoin and pump it first then sell it on the market.
- To maximize profit they came up with the idea of premining and that maximized their profit for a short time since people still bought into these shitcoins while ignoring the fact that the dev has a huge supply printed out of thin air in a blinking of an eye and plans on dumping it to  make a ton of money.
- As premine shitcoins started failing they tried hiding the premine, which is where shadow-mine and other methods come in.
- Somewhere in history someone introduced the concept of creating tokens on bitcoin network and a bunch of them were created (referred to as Omni layer). You have heard of at least one called Tether (USDT).
- A developer came alone and took this idea and created a new shitcoin to allow easy creation of tokens, premined the shit out of that shitcoin, started an ICO and make millions overnight.
- Then the idea of creating easy scam coins was expanding and ICOs became very easy for tokens
- As the ICO scam started failing (like all previous scam methods) they started looking for ways to hide the scam so they changed the name to other things including IEO, STO and eventually DeFi and NFT.
-...
- In near future as the token scam is also obsolete, they will come up with a new way to scam people.

Let's consider the fact that new altcoins are usually a scam, they aren't should be trusted, and yeah right, rug pulls are everywhere we shouldn't get into their trap just because of our greed.  This news isn't new at all, since starting I know Defi is a kind of hype like before when there is ICO or IEO, whatever it is scammers will always come back with a different name and project because they know how to play greedy people or those investors.

That's the upcoming trend, investors would always take care with these projects or better play safe just stick on Bitcoin.

Don't look too far, we have metaverse and DAO cooking up something. This are the recent trends scammers are using to scams investors of their hard earn funds. We now have worthless DAO everywhere but the trend is yet to stand. I'm beginning to see some projects change their names just to fit into this trend or update their roadmap introducing something relating to this new trends so as to keep their hype going.

Our greed as humans is what this scammers take advantage of and it works every time especially during a bullish market because that's when we get an inflow of inexperienced speculators hoping to buy into the next Bitcoin. After getting dump on in the previous trends, they jump right into the next one with hopes of profiting bit only few comes with some profits and the cycle continues.

Defi isn't only the decentralized ways of scamming, just say altcoins in general are or every new trends that get introduced into the market as they will always be leverage on by scammers for scamming as they get easy target due to people rushing to be among the first movers with hopes to dump on late comers.

Not news though.
From the time I got to know about cryptocurrencies, There were ICOs, STOs, IDOs, IEOs, and then recently meme coins, NFTs and the Defis you are talking about. All those generate shitcoins which are in most cases scams

It's why i learned to avoid shitcoins all together. In fact, in this bull run, I never bothered venturing into DeFis or NFTs because of the lessons I learned from ICOs

Crypto market operates on the same formula - someone creates a new crypto trend, it gets hyped as the next big thing, scammers start creating one scam project after another, this last for around 2 years, then everything starts again. First it was altcoins, then ICO, then DeFi, now it's NFT. After NFT some new scam will emerge.

The reason why it's so effective is that people are eager to give crypto the benefit of the doubt and believe that there's some potential in the emerging technology. Even people who are critical of those trends still often say "the current implementations are bad, but it's a promising technology". And that's exactly what the scammers want people to think, because their victims believe that they are investing in one of the few good projects.

I have a feeling that crypto will never mature and forever be a vehicle for investment scams that prey on retail investors who have no clue how to analyze and investment opportunity (even if they believe that they know what they aredoing). Only Bitcoin will be a respectable and mainstream asset, and its recognition has already started.

Scams are everywhere, not only in either crypto in general or in DeFi in particular. Rug pulls are everywhere as well. As investors or traders, we should do our own researches and have good risk management just to be safe in this market.

If anyone gamble with hope to get rich, it can be succeeded in one or a few times but in the end, and in net effect, loss is unavoidable result. We can not win 100% all times we gamble and because we are gamblers and gambling, we do not care much about risk management. So after 10 wins to increase initial capital to 10 times, for example, in the 11th bet, we bet it all and lose it all profit or even initial capital.

• [list] DeFi-Scams - Big All-In-One-Thread
• Learn more about scams and improve your security with CryptoSec

After the creation of bitcoin, altcoins were created, led to the creation of exchanges, or bitcoin was created, then exchanges, then altcoins. Whichever it wss, those were created is the fact. As they are getting created, the worse they become. Bitcoin is most perfect of them all, most decentralized and remain the best among all but though some people go beyond, risk more by investing in altcoins. Yes, some altcoins performed very great and bring return but some fell, failed and remain the source of money loss and bankruptcy. It is reality about how altcoin brought more risks to crypto.

Then were centralized exchanges, faulty in makeup and highly vulnerable to hack. since the creation of this type exchanges has been the dawn of subsequent exchange hack to stealing people's coins and making their data not private in anyway. All from altcoins to centralized exchanges were faulty.


Then the creation of DeFi

DeFi the greatest scam of 2021



According to Chainanalysis

DeFi takes on bigger role in money laundering but small group of centralized services still dominate

https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-cryptocurrency-money-laundering/



DeFi hack and scam is the real issue today, I all the time read about DeFi hacks and exploits. this is the one that happened recently:


Qubit Finance suffers $80 million loss following hack


DeFi is flawed in makeup, made up of altcoins, less decentralized, centralized, vulnerable to hack and used by hackers for illicit activities. Scammers prefer DeFi because they can easily use it for scam, move the fund to the altcoin decentralized exchange to swap it for another token.