Crypto Scams skyrocket in Q1 2025, Causing $6 Billion in Losses
In the first quarter of 2025, crypto rugpulls have caused nearly $6 billion in losses. This is a staggering 6,500% increase from the $90 million recorded in the same period last year, according to a DappRadar report.
While the frequency of rugpulls has decreased by 66%, the financial impact has skyrocketed. DappRadar’s blockchain analyst,Sara Gherghelas,points out that a single incident,the Mantra Network scam,accounts for 92% of the losses.This makes it one of the largest individual scams in recent history.
The Mantra Network case highlights how deceptive signals can be hidden in plain sight. Despite claiming growth, the platform’s peak in unique active wallets was just 64 in December 2024. Daily wallet interactions were often between 1 and 11, with many days showing zero activity.
Transaction data also raised red flags. Some days saw as many as 66 transactions,but activity frequently dropped to zero. This irregular pattern suggests inorganic engagement, a common tactic used by dapps to appear more active than they truly are.
Gherghelas warns investors to be cautious. “Low user engagement and inconsistent activity are potential warning signs,” she says. “always verify the legitimacy of a project before investing.”
