Too Long; Didn't Read
The decentralized finance market is crowded with projects that seem to promise strong investment prospects, yet lack the necessary audits that confirm their trustworthiness and reliability.
Indeed, throughout the crypto industry's 13+ years of history, there has been no shortage of fraudulent projects.
Generally, they lure victims in with promises of massive profits only to scam them out of their hard-earned funds.
Since the 2020 DeFi boom, this sector has been no stranger to fraud and cybercrime.
In fact, according to a Chainalysis report, decentralized finance protocols accounted for $2.2 billion out of the total of $3.2 billion worth of cryptocurrency stolen in 2021 while featuring a nearly 2,000% year-over-year growth in value received from illicit addresses.