The Dark Side of Crypto and Web3: Crypto-Related Scams

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Abstract

We provide an overview of crypto-related scams, including investment scams, Ponzi schemes, and more recently, rug pulls that are commonly seen in Decentralized Finance (DeFi) projects. We then discuss data sources for studying Initial Coin O ff ering (ICO) scams, before examining the case of PlusToken, the largest crypto scam, AnubisDAO, the prototypical rug pull, and Luno’s anti-scam initiative, a good prototype for other cryptocurrency exchanges and service entities to follow. User protection and education are crucial in preventing scams, despite the fact that they may require e ff orts from centralized entities and regulators.