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Defi Scams – Most Common Scams in the DeFi Space

Published

2 years ago

on

In the world of Defi, scams are unfortunately all too common. This article looks at popular Defi scams, how they operate, and how to protect yourself.

We’ll also provide tips on what to do if somebody scammed you and how to report a scammer. Finally, we’ll discuss the implications of DeFi scamming and present examples of successful prosecutions.

What Are DeFi Scams, and How Do They Work? 

Decentralized Finance (DeFi) is a term that has gained enormous popularity over the years. DeFi is the shift from centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain.

DeFi promises a more equal and accessible financial system, but it’s still largely unregulated. Lack of regulation has made DeFi a haven for fraudsters, who have plundered millions from unwary consumers.

We can summarize a typical scam in three steps:

  1. The scammer creates a fake project or impersonates an existing one.
  2. The scammer promotes the fake project or impersonates the existing one to generate interest and attract users.
  3. The scammer exits the scam, leaving users with worthless tokens or no access to their funds.

The Most Common Types of DeFi Scams 

There are many types of scams in the DeFi sector, but some are more common than others. Let us look into a few of this industry’s most frequent criminal schemes.

Phishing scams

DeFi is not immune to phishing scams. Due to the intricacy of several DeFi protocols, fraudsters have managed to successful target newcomers. 

The most common type of phishing scam in the DeFi space is impersonation. This is when a scammer creates a fake website or social media account that looks identical to a legitimate one. 

They will then use this fake account to try and trick users into sending them money or personal information. Another common type of DeFi scam is the Ponzi scheme. Instead of investing the money, the fraudster pays out previous investors. 

This scam is widespread in the DeFi space, as there are often high returns from investing in new protocols.

Scams Involving Fake or Stolen Identities

One of the most common scams in the Defi space is identity theft. Someone uses your personal information to register a new account or access an existing one. 

They may also use your information to apply for credit cards or loans or to make purchases in your name.

Another way that identity theft can occur is when someone steals your private key or recovery phrase. This gives them access to your accounts and allows them to make changes or send funds without your permission.

Pump and Dump Schemes

If you are not new to the field of financial investments, then you must have probably heard about pump-and-dump schemes. 

A group conspires to acquire a cryptocurrency at the same moment to drive up its price. Afterward, it sells it when at the peak price after promising a group of traders that this would not happen.

Pumpers make a profit, whereas dumpers lose. Sadly, it’s as simple as that. Pump and dump schemes are not new and have been around for quite some time. They are so common that the U.S. Securities and Exchange Commission has issued an investor alert about them.

Forgery and Counterfeiting of Digital Assets

Unfortunately, not every project in the DeFi world is legitimate and original. Forgery and counterfeiting are rampant, with scammers selling digital assets that don’t exist or aim to look like something else.

This scam generally happens when someone creates a website or social media account that looks identical to a legitimate project. However, the page has slight changes that allow the scammer to redirect funds to their wallet. 

For example, a scam on Twitter happened when someone created a fake version of the popular Defi project Uniswap. The account looked identical to the official one, except that it had one letter changed in the URL. 

This small change allowed the scammer to siphon over $150,000 worth of Ether (ETH) from unsuspecting users.

Fraudulent Activities Associated with Initial Coin Offerings (ICOs) 

Last but not least, ICOs tend to have an association with fraudulent activities. In an ICO, a company offers digital tokens for investors’ fiat currency or cryptocurrency. However, many ICOs are scams, with companies using the funds raised to enrich themselves instead of developing the project.

A severe fraud associated with ICOs is when the team behind the project absconds with the funds. This type of fraud is, technically, an “exit scam.” 

In an exit scam, the team often creates a fake project website and whitepaper, promising huge returns to investors. They will then raise money from unsuspecting investors and make off the cash, leaving investors high and dry.

How to Protect Yourself from DeFi Scams 

At this point, you will probably be wondering how you can protect yourself from falling into one of these scams. Below are a few tips.

  1. Do your research: This is the most important thing you can do. When you are looking at a project, make sure to read up on it as much as possible. Look at the team’s backgrounds and the project’s roadmap, and try to find as much information as possible.
  2. Don’t invest more than you can afford to lose: This general rule applies to all investments, but it is essential in the DeFi space. These projects are still very new, and there is a lot of uncertainty surrounding them. As such, you should only invest an amount you are comfortable losing.
  3. Beware of social media scams: Social media is a great way to stay up-to-date on all the latest news in the crypto world. However, it is also an excellent way for scammers to reach many people. Be careful about the links you click on and the information you trust.
  4. Look for projects with KYC and audit certifications: If a project has undergone a KYC (know-your-customer) or audit process, it passed a vetting procedure. This adds an extra security layer and gives you peace of mind. SolidProof, PeckShield, Hacken, and Solidity Finance are popular companies taking care of this aspect.

What to Do If Somebody Scammed You

If you think someone scammed you, there are a few things you can do:

  1. First, try to resolve the issue with the person or company you believe scammed you. This may be difficult, but it’s always worth a shot.
  2. Contact your local consumer protection agency if you can’t resolve the issue.
  3. You can also file a complaint with the Federal Trade Commission (FTC) or the Better Business Bureau (BBB).
  4. Finally, you can contact a lawyer to discuss your legal options.

How to Report a DeFi Scam 

If you think you’ve been the victim of a DeFi scam, consider taking a few actions to report the criminals.

First, report it to the project team or protocol developers if possible. They may help you recover your lost funds or take action to prevent others from being scammed in the future.

You can also report the scam to a crypto exchange or wallet provider. Obviously, this is applicable if you used any of these channels to access the DeFi project. Many of them have fraud departments that can help you get your money back or prevent future scams.

Finally, you can report the scam to law enforcement. This is often a long shot, but it’s worth doing if you’ve lost a significant amount of money.

The Consequences of DeFi Scamming 

Besides losing your money, scamming in the DeFi sector has several adverse effects on the industry. For instance, it undermines the trust in decentralized finance protocols and gives scammers free marketing.

When a user falls into a scam, it’s not only the investor who loses money. The whole DeFi industry is negatively affected by it. 

Scammed users will likely be more cautious in the future, leading to a decrease in trust in decentralized finance protocols. Using popular DeFi protocols and services, they can reach a larger audience and scam more people. In addition, it gives scammers free marketing. 

Examples of Successful DeFi Scam Prosecutions 

In recent years, there have been several successful DeFi scam prosecutions. Here are some notable examples:

In 2019, the US Securities and Exchange Commission (SEC) charged a company called EtherDelta with operating an unregistered securities exchange. The Ethereum blockchain-based decentralized exchange EtherDelta enables users to swap ETH and ERC20 tokens.

The SEC alleged that EtherDelta’s founder had illegally profited from the exchange by operating it as an unregistered broker-dealer. Coburn agreed to pay $300,000 in penalties and disgorge nearly $13 million in ill-gotten gains.

In 2020, the CFTC accused My Big Coin Pay, Inc. of running a fraudulent virtual currency operation.

My Big Coin Pay promised investors they could use virtual currency to buy and sell goods and services. However, the CFTC alleged that the company used investor funds to pay for personal expenses, including travel and luxury goods.

The CFTC ordered My Big Coin Pay to pay $6 million and disgorge nearly $360,000 in ill-gotten gains.

These are just a few examples of the many successful DeFi scam prosecutions that have taken place in recent years. These cases show that law enforcement is taking action against DeFi scams. If you have been a victim of a DeFi scam, you should contact a lawyer to discuss your legal options.

The Importance of Verifying Senders and Receivers Before Transferring Funds 

One last thing you should consider before transferring funds is verifying both the sender’s and receiver’s addresses. Too many people have fallen victim to scams because they didn’t confirm the address before sending funds. 

If you’re not sure how to verify an address, here are a few tips: 

  • Check if the address is valid on Ethereum’s leading network. You can do this by pasting the address into a block explorer like EtherScan. 
  • Make sure the address has a balance. If it doesn’t, that could be a sign that it’s not a valid address. 
  • If you’re sending funds to an exchange, check if the exchange has a page on EtherScan. If it does, compare the addresses to make sure they match. 

These are just a few of the many ways you can verify an address. By taking these extra steps, you can help protect yourself from scams.

Bottom Line – Protecting Yourself from DeFi Scams Takes Education and Awareness

The best way to protect yourself from DeFi scams is to educate yourself and stay aware of the latest scams. Understanding how these scams work can help protect yourself and your hard-earned money.

Contact a lawyer to discuss your options if you think you may have been a victim of a DeFi scam. There were case

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Press Release

Free cloud mining starts here: Recommended top 3 cloud mining platforms in the United States to earn Bitcoin

Published

6 days ago

on

March 28, 2025

By

Exploring the world of cryptocurrency can feel like stepping into the unknown, especially when it comes to cloud mining. The promise of earning passive income through cloud mining is undeniably tempting, but it’s essential to be cautious and select a reliable platform. To make an informed decision, you’ll need to evaluate more than just potential returns. You must also consider factors such as legality, security, and long-term sustainability.

Here, we highlight the top 3 cloud mining platforms that are not only legal but also highly trustworthy in 2025. In this comprehensive guide, we compare the performance and reliability of Snxcrypto, ECOS, and Binance.

Platform Comparison:

PlatformKey FeaturesDifficulty of UseOverall Rating
SnxcryptoReal-time mining statistics, excellent price-to-performance ratio, user-friendly interface, free Bitcoin planVery Easy★★★★★
ECOSCloud mining and trading features, built-in wallet, intuitive interface (though slightly cluttered)Easy★★★★☆
BinanceMultiple mining contracts, wide range of features and active community for trading, earning, and reinvesting cryptocurrenciesModerate★★★★★

Introduction to Top 3 USA Cloud Mining Providers:

Snxcrypto
Snxcrypto is one of the best-known cloud mining platforms in the US and UK. It stands out for its strong security features, eco-friendly mining practices, and user-friendly design. New users even receive a $100 bonus upon registration. Whether you’re new to mining or an experienced user, Snxcrypto offers a smooth experience with mining rewards delivered daily.

OK000

Key advantages include its detailed, real-time mining statistics, a powerful price-to-performance ratio, and a no-cost Bitcoin mining plan. While it doesn’t offer physical hardware ownership, it ensures efficient mining with the latest technology. However, it has limited cryptocurrency options compared to larger platforms.

ECOS
ECOS is another trusted cloud mining provider, offering diverse contracts to suit different investment levels. The platform also supports a mobile app for performance tracking, allowing miners to stay updated on their cloud mining activities.

ECOS offers a good combination of energy-efficient operations, detailed analytics, and excellent customer service. However, its misleading profit calculator and limitation to Bitcoin mining may not appeal to those looking for more diverse investment opportunities.

Binance
Binance, a major player in the cryptocurrency exchange world, extends its services to cloud mining through Binance Pool. The platform allows users to mine popular cryptocurrencies like Bitcoin and Ethereum while taking advantage of a range of other crypto services such as trading and reinvesting.

Binance stands out for its beginner-friendly interface and free mining plans, although users will have limited control over mining operations. Additionally, while it offers a range of contracts, it’s more suited for traders looking for integration with their broader cryptocurrency activities.


Why Is Snxcrypto the Best Cloud Mining Platform Right Now?

Snxcrypto has earned a solid reputation as one of the leading cloud mining platforms. The platform’s success is due to its commitment to transparency, cutting-edge technology, and a user-first approach. Here’s why Snxcrypto stands out in 2025:

Transparency and Trustworthiness
One of Snxcrypto’s core values is transparency. Unlike many competitors, the platform provides users with detailed real-time data about the mining process, including pool performance, equipment efficiency, and earnings. This level of transparency builds trust with users, giving them a clear understanding of how their investments are performing.

Competitive Pricing and Flexible Plans
Snxcrypto offers flexible pricing plans to cater to various budgets. Whether you’re a beginner with modest investment goals or a large investor seeking higher returns, Snxcrypto’s diverse options allow for tailored strategies. This flexibility makes cloud mining accessible to a broader audience, ensuring that everyone can participate regardless of their investment level.

Cutting-edge Technology and Efficiency
Snxcrypto stays ahead of the curve by using the latest mining technology, maximizing efficiency while minimizing operational costs. This competitive edge helps boost returns for users and ensures that mining operations remain cost-effective and high-performing.

Top-notch Customer Support and Community Engagement
Snxcrypto’s customer service is responsive and knowledgeable, providing users with timely assistance whenever needed. The platform also fosters a strong sense of community, allowing miners to exchange insights and collaborate, which enhances the overall user experience.


Conclusion
Selecting the right cloud mining platform is crucial for anyone serious about cryptocurrency mining. While the idea of earning passive income through cloud mining is tempting, it’s vital to do so with caution. Informed decision-making is key to ensuring that your investments are secure, sustainable, and rewarding.

Whether you’re an experienced miner or a newcomer, Snxcrypto offers one of the safest, most reliable cloud mining platforms in the market. By prioritizing transparency, efficiency, and customer satisfaction, Snxcrypto has earned its spot as the top cloud mining choice in 2025.
Want to get started with Snxcrypto? Visit Snxcrypto’s official website for more information.

Company Information：

Company name: SNXCRYPTO LIMITED

Company Website：https://snxcrypto.com

Company Video：https://youtu.be/ICSteeVYao4

Company mail:  info@snxcrypto.com

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Press Release

Free Cloud Mining with SnxCrypto: A Revolutionary Way to Make Money with Cryptocurrency Without Investment

Published

6 days ago

on

March 28, 2025

By

In the world of cryptocurrency, mining has become one of the most popular methods to earn digital currencies. However, traditional mining can be a costly, complicated, and time-consuming process, requiring expensive hardware, constant maintenance, and significant energy consumption. Enter SnxCrypto – a leading platform that offers an innovative solution to these challenges through cloud mining.

What is Cloud Mining?

Cloud mining is a method that allows users to mine cryptocurrencies without the need to invest in or manage the physical hardware themselves. Instead of purchasing and setting up expensive mining rigs, individuals can rent computing power from a remote data center and participate in cryptocurrency mining from the comfort of their own homes. Cloud mining has revolutionized the way people access the mining market, making it more accessible and less risky for beginners and experienced miners alike.

Why Choose SnxCrypto for Cloud Mining?

SnxCrypto stands out in the crowded world of cloud mining platforms due to its advanced cloud mining equipment and cutting-edge technology. Here’s why SnxCrypto is quickly becoming a go-to platform for cloud miners:

· State-of-the-Art Mining Equipment
SnxCrypto has invested heavily in the latest cloud mining hardware to ensure that users can enjoy the best possible performance. With the most advanced mining rigs available, the platform guarantees stable and efficient operations, allowing users to maximize their mining rewards with minimal downtime.

· Experienced and Highly Skilled Technical Team
Behind SnxCrypto’s platform is a dedicated and professional team of technical experts. These specialists are constantly optimizing the platform’s mining algorithms and ensuring the highest levels of security and efficiency. Whether it’s troubleshooting issues or innovating new ways to improve the system, the team is committed to providing users with a seamless experience.

· Stable High Returns
One of the key advantages of using SnxCrypto is the platform’s ability to provide stable, high yields. While cryptocurrency mining can sometimes be unpredictable, SnxCrypto’s robust infrastructure and optimized algorithms help users achieve consistent, profitable results. This stability has made SnxCrypto a trusted platform for both novice and experienced miners.

· Free $100 Trial for New Members
SnxCrypto makes it easy for new users to get started by offering a generous promotion: a free $100 experience trial. This allows newcomers to dive into cloud mining without having to invest any of their own money upfront. With this bonus, new users can start mining immediately, test the platform’s features, and see how the system works in real-time. This risk-free entry point makes SnxCrypto the perfect choice for those who are curious about cryptocurrency mining but are hesitant to commit their funds at the outset.

OK000

· No Investment Required to Earn
One of the most unique features of SnxCrypto is that users can start earning without making an initial investment. The platform’s design allows anyone to register, use the free $100 trial, and start mining without the need for any upfront capital. This is a game-changer for those who want to dip their toes into the world of cloud mining but don’t have the funds to invest in hardware or software. Whether you’re a complete beginner or an experienced miner, SnxCrypto offers an easy entry into the world of cryptocurrency mining with no financial risk.

· Fast Withdrawal System
Time is money, especially in the world of cryptocurrency. SnxCrypto understands the importance of fast and efficient transactions. The platform’s withdrawal system ensures that users can quickly access their earnings without unnecessary delays. Whether you’ve earned through the free $100 trial or made a personal investment, you can rest assured that your withdrawals will be processed in a timely manner.

· User-Friendly Interface
Even for those who have never mined before, SnxCrypto’s platform is intuitive and easy to navigate. The user interface is designed with simplicity in mind, ensuring that even beginners can quickly understand how to start mining. From signing up to withdrawing earnings, the entire process is streamlined for efficiency and ease of use.

The Benefits of Cloud Mining with SnxCrypto

There are numerous advantages to cloud mining with SnxCrypto, making it a highly appealing option for anyone interested in earning cryptocurrency without the complexities of traditional mining.

No Need for Expensive Hardware
Cloud mining eliminates the need to buy expensive mining rigs. All you need is an internet connection and a device to access the platform. SnxCrypto handles all the technical aspects, including hardware maintenance and software updates, so users don’t have to worry about the high costs of mining equipment or dealing with system failures.


Energy Efficiency
Traditional mining can be highly energy-intensive, with miners consuming vast amounts of electricity to power their rigs. SnxCrypto’s cloud mining solution runs on state-of-the-art, energy-efficient equipment that minimizes the environmental impact while maximizing profits. By using shared resources in data centers, users can mine without the excessive energy consumption associated with home-based mining setups.

Accessibility and Convenience
Cloud mining makes cryptocurrency mining accessible to anyone, regardless of location or technical knowledge. With SnxCrypto’s platform, anyone can start mining in minutes, from anywhere in the world, without needing to set up or maintain complex hardware.

Scalability
As users gain experience and grow their investments, they can scale up their mining operations on SnxCrypto’s platform. Whether you’re starting small or aiming for larger profits, SnxCrypto offers flexible plans to meet the needs of every miner, allowing them to adjust their mining power as needed.

Final Thoughts
SnxCrypto is leading the charge in making cryptocurrency mining easier, more efficient, and accessible to everyone. Whether you’re a complete beginner or a seasoned miner, SnxCrypto’s platform offers a range of benefits that make it the ideal choice for cloud mining. From cutting-edge equipment to fast withdrawals and no initial investment required, SnxCrypto provides all the tools and resources you need to start earning cryptocurrency with ease.

With the free $100 trial, there’s no better time to join SnxCrypto and experience the future of cryptocurrency mining firsthand. Sign up today and start earning with the best cloud mining platform available!

Company Information：

Company name: SNXCRYPTO LIMITED

Company Website：https://snxcrypto.com

Company Video：https://youtu.be/ICSteeVYao4

Company mail:  info@snxcrypto.com

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Press Release

Cequire Capital Announces $500K Investment and Strategic Partnership with BBA Chain to Drive Web3 Innovation

Published

1 week ago

on

March 27, 2025

By

Cequire Capital, a leading Web3 investment firm, is thrilled to announce a $500,000 investment and strategic partnership with BBA Chain, a next-generation blockchain infrastructure provider. This collaboration marks a significant step forward in fostering innovation and accelerating the adoption of decentralized technologies.

Cequire Capital is dedicated to backing bold ideas and pioneering blockchain projects through strategic investments, early-stage token support, and startup growth. By providing in-house tools and industry expertise, Cequire aims to be a catalyst for the next wave of decentralized success. This new partnership with BBA Chain underscores Cequire’s commitment to advancing the Web3 ecosystem and empowering blockchain projects with financial backing and strategic guidance.

BBA Chain is a high-performance blockchain platform designed to enhance scalability, security, and interoperability in decentralized applications. By aligning with Cequire Capital, BBA Chain gains access to crucial resources that will drive its mission of building a more efficient and decentralized future. The $500,000 investment will support the development, expansion, and adoption of BBA Chain’s innovative blockchain solutions.

Key Benefits of the Partnership:

  • Significant Financial Backing: Cequire Capital’s $500,000 investment in BBA Chain will fuel its expansion and provide essential support for its ecosystem.
  • Innovation & Development: The collaboration will focus on fostering technological advancements and supporting early-stage blockchain projects to push the boundaries of decentralized technology.
  • Strengthening Web3 Adoption: By leveraging Cequire’s industry expertise and BBA Chain’s scalable solutions, the partnership aims to drive mainstream adoption of blockchain technology and decentralized applications.

“We are excited to partner with BBA Chain, a forward-thinking blockchain platform that aligns with our vision of decentralized innovation,” said Salman Parcy, General Partner at Cequire Capital. “Our investment will help accelerate their mission and further cement our commitment to fostering groundbreaking Web3 projects.”

This investment follows Cequire Capital’s strategy of backing promising blockchain projects and empowering them with the financial and strategic resources necessary for success. Similar to previous investments, such as the recent funding of Wyscale, Cequire continues to identify and support projects that have the potential to revolutionize the blockchain industry.

The partnership announcement was shared on Cequire Capital’s LinkedIn and Twitter channels, as well as on BBA Chain’s Twitter.

For more information, visit:

About Cequire Capital:

Cequire Capital is a Web3 investment firm committed to supporting blockchain projects through strategic investments and in-house solutions. With a focus on liquidity provision, early-stage token investments, and startup growth, Cequire is a trusted partner for innovators in the decentralized space. By investing in promising blockchain ventures, Cequire aims to shape the future of Web3 and drive sustainable growth across the industry.

About BBA Chain:

BBA Chain is a cutting-edge blockchain platform designed to provide scalable, secure, and interoperable solutions for decentralized applications. Through its innovative technology, BBA Chain is shaping the future of blockchain adoption and development. With Cequire Capital’s investment and strategic partnership, BBA Chain is poised to further expand its influence and enhance its technological capabilities.

Contact Details:

Company Name: Cequire Capital
Website: https://cequire.com/

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