What lessons can crypto investors learn from the biggest scams of 2023?

You probably learned about the safety of the blockchain ecosystem. All cryptocurrencies are based on a decentralized blockchain ecosystem. Still, it has been facing thousands of spam eroding trillions of dollars in the market.

Most of them go unnoticed due to infrastructural issues, but today, in this post, you will learn some of the biggest scams of 2023, which will blow your mind! We will also discuss the safety and solutions to such problems. Let’s delve into the dark world of cryptocurrencies.

Top 10 Major Crypto Scams in 2023

Here are the top most popular scams that happened in 2023; before beginning the next year, you must learn from these mistakes:

#1 Euler Finance Hack

In March 2023, a staggering $200 million in cryptocurrency vanished within a few seconds! PeckShield, the cybersecurity experts, raised the alarm with a simple tweet. He raised concerns about Euler Finance and suspicious transactions. However, the good news is the hackers returned the stolen funds a few weeks later! They even sent an apology note.

#2 Atomic Wallet Hack 

June 2023 marked a $100 million hack on Atomic Wallet. It impacts over 5,000 users on the platform. However, the authorities blamed the Lazarus hacking group. As a consequence, the Atomic Wallet faced a class-action lawsuit.

#3 MultiChain Hack/Rug Pull

MultiChain, a cross-chain protocol, fell victim to a $125 million hack in July 2023. Suspicions of insider involvement were further fueled when the platform’s CEO was arrested by Chinese authorities. With the CEO and his sister in custody, MultiChain made the decision to close its operations.

#4 Curve Finance Hack

In July 2023, Curve Finance faced a cyberattack. It resulted in a massive loss of $60 million in crypto. Hackers targeted the platform’s liquidity pools and exploited the code vulnerabilities. Fortunately, some of the funds stolen were returned. A total of 73 percent of the stolen holdings were recovered by white-hat hackers. Later, Curve Finance pledged to reimburse affected users.

#5 CoinsPaid Phishing Scam

In August 2023, we witnessed a $37 million hack on CoinsPaid. Here, an employee fell prey to a phony job offer that installed malware! As a result, the hackers got access to millions in crypto funds. The identity of the hackers remains unconfirmed, and the stolen funds remain unrecovered.

#6 Mixin Breach Scam

September brought another unfortunate incident to the crypto investors. Mixin, a crypto platform, fell victim to a data breach. It led to a loss of $200 million in cryptocurrency. It happened due to a breach of Mixin’s cloud service. However, Mixin promised to compensate users with half of their lost holdings. Is it enough?

#7 TrustWallet Scam

TrustWallet, a renowned software wallet provider, made headlines in September 2023 due to a phishing email campaign. Hackers used TrustWallet users by sending thousands of emails. In the emails, users were warned that their accounts would be suspended and were directed to a malicious webpage that would steal their personal information. More than $40 million in cryptocurrency was stolen after such an email.

#8 CoinEx Hack

In September 2023, the CoinEx crypto exchange faced a shocking $70 million theft. The attackers gained access to private keys for user hot wallets. Suspicions once again pointed to the Lazarus hacking group. The stolen funds, including Bitcoin, Ethereum, Bitcoin Cash, and Solana, are yet to be recovered.

#9 Stake Hack

The controversial crypto gambling platform Stake suffered a $41 million hack in September 2023. The hack targeted users’ crypto hot wallets. The stolen funds remain elusive, as is often the case with crypto hacks.

#10 LastPass Data Breach

LastPass, a popular password manager, faced another breach in October 2023. The breach also occurred in 2022. $4.4 million worth of cryptocurrency was lost as a result. A large number of seed phrases and passwords were exploited. LastPass remains a prime target for cybercriminals.

Red Flags and Warning Signs

Unusually high returns, unsolicited investment offers, and pressure to act quickly 

are common signs of such issues. If you are facing any of these incidents, be careful! A mistake can cause them to attack your wallet. Besides that, do not use unregulated platforms for cryptocurrencies.

Importance of Skepticism and Research

You need to be skeptical and research properly before providing information on any platform. You need to understand the platform security level and authenticity in the business. Before investing in cryptocurrency, take the help of a financial advisor to learn more about the projects, use cases, team, expert crypto predictions, and whitepaper.

Check for red flags, like unclear goals or anonymous founders. Do not act in FOMO because a deep understanding of the technology and market trends is essential. 

Protecting Personal and Financial Information

You need to protect your personal and financial information. Do not disclose them on any unrequited platform. Always use reputable wallets and exchanges with strong security measures.

Most providers and exchanges offer two two-factor authentication, so enable it and enhance the security even in the mobile app. Beware of unverified emails and messages.

Recovery and Reporting Scams

In case of a scam, contact law enforcement and report the incident to the relevant authorities. The hard truth is you may not get the stolen funds, but sometimes the platform provider will compensate you a certain amount if you notify them early. Moreover, do not hesitate to share such experiences with the crypto community to prevent others from falling victim. Remember, the fight against scams is always a collective effort.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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