Press Release
Defi Scams – Most Common Scams in the DeFi Space
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:
- The scammer creates a fake project or impersonates an existing one.
- The scammer promotes the fake project or impersonates the existing one to generate interest and attract users.
- 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.
- 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.
- 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.
- 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.
- 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:
- 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.
- Contact your local consumer protection agency if you can’t resolve the issue.
- You can also file a complaint with the Federal Trade Commission (FTC) or the Better Business Bureau (BBB).
- 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
Press Release
Hong Kong Web3 Festival 2025’s Title Sponsor OKX Web3 Launches Exclusive NFT Tickets
OKX Web3 has confirmed its continued support to Hong Kong Web3 Festival, recommitting as a Title Sponsor of the third edition of this epic conference taking place from April 6 to 9 at HKCEC. Its exclusive NFT tickets, 15% off the regular ticket price, are available for grabs now. See more details at https://www.okx.com/ul/q3xd9N
As a pioneer in driving innovations in the Web3 ecosystem globally, OKX Web3 is committed to fostering industry growth through technological advancements and has developed OKX Wallet as one of the industry-leading decentralized multi-chain wallets, which is capable of supporting over 100 public blockchains and offering users a seamless, one-stop experience in the Web3 world. As of November 20, the OKX Wallet plugin for Google Chrome has surpassed 2 million downloads, serving as a critical gateway for users to securely access and navigate the Web3 space.
Hong Kong Web3 Festival, co-hosted by Wanxiang Blockchain Labs and HashKey Group and organized by W3ME, is Asia’s premiere crypto gathering that convenes the world’s smartest minds in the Web3 and crypto space. Its previous editions, which took place in April 2023 and 2024, brought together over 250 exhibitors, more than 800 speakers, 80,000 visitors and 300 side events. Previous speakers in 2023 and 2024 included prominent figures like Paul CHAN Mo-po, GBM, GBS, MH, JP, Financial Secretary of the Government of the Hong Kong Special Administrative Region, Vitalik Buterin, Co-founder of Ethereum, and Cathie Wood, Founder, CEO and CIO of ARK Invest.
Building on the record-breaking success of its previous editions, this year’s Festival is expected to witness an estimated tens of thousands of attendees from across the globe. The event goes beyond a simple conference, as it unites industry leaders and game-changers to explore the future of Web3 and showcase the latest Web3 solutions and progress.
Taking an area of over 14,000㎡at the iconic HKCEC, which is 1.5 times larger than previous ones, the conference creates an ideal networking and learning environment, with regular conference areas and exhibition spaces embracing professionals, investors, enthusiasts, and leading projects worldwide who will delve into the latest progress, solutions, trends, and policies in Web3 and crypto.
Early bird registration is closing soon! Save $400 by registering before Dec. 31: https://www.web3festival.org/hongkong2025/#/en
Press Release
WOM Protocol: Pioneering the Future of SocialFi with a Powerful Layer 1 Solution
WOM Protocol was early to the SocialFi space back in 2020 – when the path to revolutionizing marketing wasn’t easy. SocialFi faced hard times in recent years, with many “to-earn” models failing to match the user retention seen in Web2 social networks. But through relentless innovation, WOM has shown remarkable persistence. Thanks to its engaging daily reward mechanism, users didn’t just stick around – they grew. Now, with the numbers to prove its impact, WOM is making its boldest move yet: launching a powerful EVM Layer 1 blockchain infrastructure redefine authenticity, trust and community in a decentralized world.
And the Timing Couldn’t Be Better
Traditional ads are fading – and consumers are tuning out. People are tired of ads, and the numbers say it all. 70% of millennials and Gen Z have stopped watching TV ads, 65% skip YouTube ads, and 86% are blind to banners and pop-ups. Even influencers are losing credibility, with 43% of consumers finding their content fake. Traditional advertising isn’t just annoying; it’s ineffective. It’s time for a new approach that feels real, builds trust and actually connects with people.
The WOM Solution: Rewarding Authentic Advocacy
WOM Protocol leverages blockchain to reward genuine peer-to-peer recommendations, replacing intrusive ads with authentic user-generated content (UGC). The protocol’s ecosystem includes:
- Creators: Share authentic product recommendations and earn WOM Tokens .
- Authenticators: Verify content authenticity, creativity, and positivity .
- Platforms: Integrate the protocol and monetize through WOM rewards instead of ads .
- Brands: Access genuine, peer-validated recommendations to connect authentically with consumers .
This decentralized ecosystem ensures that everyone—from content creators to validators to platforms—has aligned incentives to maintain authenticity and quality.
The Power of Authentic Content in 2024
Recent statistics highlight the growing importance of authentic, user-generated content (UGC) in the marketing landscape:
- 60% of consumers trust UGC more than any other type of content when making purchasing decisions.
- 40% of shoppers say UGC is critical to their buying process.
- 93% of marketers report that UGC performs better than branded content.
- 90% of consumers are influenced by UGC when making a purchase.
These insights underscore the effectiveness of genuine peer-driven content in driving brand engagement and sales. In an age where consumers crave authenticity, WOM Protocol provides the infrastructure to capitalize on this behavior.
WOM Protocol’s Achievements
Since its launch, WOM Protocol has demonstrated consistent growth and sustainability:
- Over 281,000 Peer-Reviewed Videos
- Daily Transactions: The ecosystem handles between 50,000 to 200,000 daily transactions, including content creation, staking and reward distribution.
- Sustainable Rewards: WOM Protocol has distributed rewards daily over the past few years to a growing user base of creators, authenticators, and platforms who continuously contribute to the network.
- Powerful Tools: The WOM Campaign Manager allows advertisers to access authentic UGC and run targeted campaigns. The WOM Authenticator App enables users to validate content from the BULLZ app, ensuring no piece of content goes unreviewed. This validation process has led to an impressive +40% retention rate among users.
- BULLZ App Success: The BULLZ app, dedicated to web3 and crypto recommendations, has grown to over 158,000 users and generated more than 12 million views. The app also features a separate BULLZ campaign manager for web3 brands to request videos directly from the BULLZ creator community.
This sustained reward distribution and suite of innovative tools ensure that participants are consistently incentivized, reinforcing a thriving and collaborative ecosystem.
Why WOM Needs a Dedicated Layer 1 Blockchain
The success of WOM Protocol has shown the need for a scalable, efficient infrastructure to handle rising transaction volumes and to reduce fees for its growing user base. To achieve this, WOM has developed in 2024 its own EVM based Layer 1 infrastructure, capable of processing 10,000 transactions per second (TPS) with fees as low as $0.0001. This powerful EVM ensures fast and seamless interactions for creators, authenticators, platforms and advertisers. With a public testnet launching in Q1 2025 and a mainnet in Q2 2025, the WOM Chain will drive full decentralization, paving the way for community-driven governance and the transition to a DAO where users collectively shape the future. WOM Protocol is more than just a marketing tool – it’s the engine of a decentralized, authentic and user-driven economy.
Press Release
0xFútbol Announces Exclusive $FUTBOL Presale to Celebrate XDC’s Strategic Investment
For decades, fútbol’s ecosystem has upheld a status quo that leaves fans disconnected—without a voice, a stake, or a meaningful way to be part of the game they love. Despite fútbol’s global popularity, there has been no unified platform that truly empowers fans or brings them closer to the sport in transformative ways.
Founded by visionary builders from Uruguay and Argentina, 0xFútbol is changing the game. By leveraging blockchain technology, they are creating a digital hub for the world’s 4 billion fútbol fans—a place where they can connect, compete, and even own a piece of fútbol’s future. 0xFútbol transforms watchers into owners, redefining what it means to be a fútbol fan in the modern era.
From watchers to owners
The fútbol community is vast, yet fragmented. 0xFútbol’s mission is to bring it together by delivering engaging experiences that resonate with every fan. From games to tools, every product is a step toward building a thriving, interconnected community.
0xFútbol recently acquired MetaSoccer, the first fútbol manager game, and has been actively working to improve and expand its features. Now in its private beta phase, MetaSoccer has already captivated over 40,000 fans with its innovative approach to managing teams and competing using blockchain-based assets. Alongside MetaSoccer, 0xFútbol is developing additional products like Fútbol PM, a prediction market where fans can showcase their knowledge, and Wonderkid, a hyper-casual Telegram game designed for quick, competitive fun.
Every new fan strengthens the community. With each voice added, the collective power of fútbol fans grows, paving the way to shake up the status quo. Together, 0xFútbol isn’t just building products—it’s building a movement.
“Imagine millions of fútbol fans united in one ecosystem. The energy, the culture, the shared passion—this is the future 0xFútbol is building. It’s a future where fans actively shape the game they love, not just watch from the sidelines.” Says Agu Rodríguez, CEO.
$FUTBOL Presale with XDC Network
In a significant milestone, the XDC Network has joined 0xFútbol as a strategic investor, recognizing the platform’s potential to transform fútbol through blockchain. This partnership represents a major step forward in 0xFútbol’s journey to create a unified and interactive fútbol ecosystem.
As part of this collaboration, 0xFútbol will host an exclusive presale for the XDC community starting on December 16th. This presale offers early supporters a chance to acquire the $FUTBOL token, which powers the entire 0xFútbol ecosystem.
The $FUTBOL token is more than just a digital asset—it’s the backbone of the platform. It enables users to access key products like MetaSoccer and Fútbol PM, participate in governance, and unlock future opportunities as the ecosystem grows. With $FUTBOL, fans are empowered to move from spectatorship to ownership, shaping the future of fútbol while engaging with innovative products and experiences.
This collaboration with XDC highlights the growing recognition of 0xFútbol’s potential to revolutionize how fútbol fans interact with the sport. By combining blockchain innovation with fútbol culture, 0xFútbol is positioning itself as a leader in the Web3 fútbol space.
Join us now!
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