We Deliver Insights to Keep You Safe from Scammers, Hacks, Malware, & Phishing — “Crypto Security Truths”: Issue 33
Weekly Review of Top Cybersecurity Incidents, Topics, Tools, and Issues in Web3, Crypto, and Blockchain Ecosystems
We have been capturing as much as we run across every week to find you clear examples of what not to do in the Cryptoverse in terms of risk, safety, and security. We have captured a long list of topics this week in the following headings: Hacked, Malware, Phishing, Scammers, Gaming, On-Chain, News, Policy, Tools & Researchers, so buckle up and learn how to protect yourself better in Crypto.
Our top thought leaders capture their own perspectives for each category as an Analyst Notes.
7 Feb 25– 14 Feb 25
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Introduction
This week, crypto’s underbelly is laid bare — from zkLend’s $9.5M hack and Four.Meme’s $183K breach to the calculated phishing schemes targeting the CAR memecoin and a DM scam that left fraudsters laughing at their own expense. We explore on-chain manipulations, including Ethereum Foundation sell-offs and PancakeSwap v3 exploits, and witness political drama as Argentina’s $LIBRA debacle and allegations against President Milei blur the lines between governance and crypto. Meanwhile, emerging narratives like DeFAI’s bull market promise a new era driven by AI and self-made trading agents like Big Tony, even as the cost of “expensive money” and Web3 gaming’s identity crisis remind us that the stakes have never been higher — if you can navigate the new scam tactics where even “official” badges are being exploited.
Hacked
zkLend Hacked for $9.5 Million
On February 11, 2025, Starknet-based lending platform zkLend suffered a security breach resulting in the loss of approximately $9.5 million. The attacker exploited a vulnerability in zkLend’s smart contract, manipulating a rounding error in the mint() function to siphon 3,600 Ethereum (ETH). The stolen funds were initially bridged to Ethereum and funneled through the privacy protocol Railgun; however, due to Railgun’s internal policies, the funds were returned to the original address. In response, zkLend paused all protocol operations and offered the attacker a 10% bounty — allowing them to keep 10% of the stolen funds — in exchange for returning the remaining 90%. As of February 12, 2025, there had been no response from the hacker.
Four.Meme Attacked for $183,000
On February 11, 2025, BNB Chain-based memecoin platform Four.Meme experienced a malicious attack that resulted in the loss of approximately $183,000 worth of digital assets. The platform promptly suspended its decentralized exchange (DEX) transactions on PancakeSwap to prevent further losses and initiated measures to address the security breach. While the specific details of the exploit have not been disclosed, the team assured users that on-chain trading activities could continue and that tokens already launched using the platform were unaffected. Blockchain security firm PeckShield confirmed the extent of the financial loss.
Analyst Takeaway: This week’s breaches reinforce the reality that even well-funded projects struggle with smart contract security. zkLend’s exploit highlights how precision errors in contract logic can lead to multimillion-dollar losses, while Four.Meme’s attack reminds us that even memecoin platforms aren’t immune. The biggest takeaway? Post-breach responses matter. zkLend’s transparency and bug bounty offer were a smart move, but without a response from the attacker, they’re still at risk. Meanwhile, Four.Meme’s rapid action limited losses. The industry needs better preemptive auditing — because reactionary fixes are always too late.
Malware
Crypto Heist: The “Crazy Evil” Gang’s Wallet Draining Tactics
A Russian-speaking cybercrime group known as “Crazy Evil” has been systematically targeting cryptocurrency holders using advanced malware (StealC, AMOS, and Angel Drainer), social engineering, and phishing tactics. These criminals exploit trusted platforms, such as outdated WordPress sites and GitHub repositories, to distribute malware, hijack wallets, and steal sensitive data. Victims are often redirected through a network of traffers to malicious sites, making detection difficult. The best defense against these attacks involves adopting a Zero Trust security model, using hardware wallets, enabling multi-factor authentication, and maintaining rigorous endpoint security. As crypto threats evolve, proactive prevention remains the strongest safeguard against financial loss and identity theft.
Web3 Phishing Scam: The Valentine’s Day Job Offer Trap
A recent phishing scam attempted to exploit crypto enthusiasts by posing as a legitimate job offer from a well-known figure, Hudson Jameson. The scam, which included a misspelled mention of Polygon and an AI-generated message, aimed to lure victims into clicking a malicious link disguised as a Valentine’s Day gift. Quick verification by community members, including Intell On Chain and NFT_Dreww, helped expose the fraud before serious damage was done. The incident underscores the importance of skepticism, identity verification, and strong cybersecurity defenses, like Warden, to prevent wallet-draining schemes in Web3.
Fake Token Scam: Cloudflare Captcha Used for Wallet Drain Attacks
Scammers are modifying token information for popular assets like $CAR and embedding fake Kick platform links via Linktree to deceive users. The attack relies on counterfeit Cloudflare captcha pages, which prompt users to execute malicious code under the guise of security verification. These tactics, coupled with suspicious on-chain activity linked to Binance and creator-controlled wallets, raise red flags about transparency and legitimacy. As crypto scams become more sophisticated, staying vigilant, verifying website authenticity, and avoiding unsolicited verification prompts are critical to safeguarding digital assets.
Analyst Takeaway: The “Crazy Evil” gang is proving that the old playbook — phishing, malware, and wallet drainers — still works when victims get complacent. Their multi-layered attack strategy shows that crypto investors and developers alike need to rethink endpoint security. Meanwhile, the Cloudflare captcha scam reveals how social engineering and trust exploitation can turn a basic security feature into a Trojan horse. The Valentine’s Day phishing attack was amateurish, but it serves as a reminder that even poorly executed scams catch people off guard. The lesson? Zero-trust everything, verify every link, and assume every unexpected “security check” is a trap.
Phishing
Phishing Links Plague Central African Republic Memecoin
The Central African Republic (CAR) memecoin has become a cybersecurity nightmare, with phishing links infiltrating its information pages on popular crypto aggregators. Initially gaining traction after an alleged endorsement by CAR President Faustin-Archange Touadéra, the project’s credibility quickly crumbled as its X account was suspended and its website vanished. Security researchers found that links on platforms like CoinGecko directed users to Telegram groups containing phishing bots and fraudulent verification pages. The incident highlights the risks of community-controlled crypto aggregators, where bad actors can manipulate listings to deceive investors. As concerns about the legitimacy of the CAR memecoin mount, suspicions have arisen that the presidential endorsement may have been an AI-generated deepfake.
DM Scam Fail: A Botched Script Exposes a Fraudster
A poorly executed scam message went viral when a fraudster forgot to customize their direct message script, sending a generic “Hey [First Name]” to potential victims. The blunder, spotted by crypto users on X, quickly became a source of ridicule, with users mocking the scammer’s lack of attention to detail. The failed attempt underscores the increasing prevalence of mass-targeted scams in the crypto space, where fraudsters rely on automation but often expose themselves through careless mistakes. While this instance was comedic, it also serves as a reminder that social engineering attacks continue to be a major threat in the industry.
Government Checkmark Scams on the Rise
Crypto scammers are exploiting X’s official government checkmark system to run fraudulent schemes, impersonating political figures and nations to gain credibility. Reports indicate that bad actors are repeatedly changing account names and profiles to appear as legitimate government entities before launching rug pulls and phishing scams. One such scam involved an account claiming to represent the Democratic Republic of Congo’s president, which was later found to be a fake. The trend has raised concerns about X’s verification process, with many questioning how scammers are able to obtain government checkmarks. As these schemes grow more sophisticated, users are urged to verify official accounts and remain skeptical of political figures promoting crypto projects.
Analyst Takeaway: The CAR memecoin phishing fiasco is a prime example of how easily malicious actors can hijack crypto aggregator platforms to lure victims. Meanwhile, the government checkmark scam on X reveals just how flawed the verification system is — scammers are evolving faster than the platforms meant to stop them. And while the DM scam fail was laughable, it underscores how mass phishing campaigns are increasingly automated, making vigilance more critical than ever. The bottom line? No one is immune. Even so-called official sources need to be scrutinized.
Scammer
Exploiting Tragedy — Using Real Cancer-Stricken Babies to Grift: The Case of Ronnie Magrehbi
Ronnie Magrehbi, alias Ronny Fargo, has been exposed for orchestrating multiple rug pulls, including one exploiting the story of a child battling brain cancer. Operating under different aliases, Magrehbi has a history of fraud, including hacking and extorting professional athletes, armed robbery, and scamming crypto investors. His latest scheme involved impersonating a GoFundMe account, launching a fraudulent token, and disappearing with investors’ money. Reports have been filed with law enforcement and scam-tracking organizations to hold him accountable.
President of Argentina’s Memecoin — Unprecedented Liquidity Manipulation in Solana Ecosystem
An investigation by Rug Pull Finder uncovered a deceptive liquidity manipulation scheme in the Solana ecosystem. The perpetrators added only 20% of tokens to liquidity instead of the expected 30%, using undisclosed wallets to extract Solana (SOL) from the market. The findings, backed by blockchain analysis, reveal a systematic effort to deceive investors and drain liquidity, raising serious legal concerns. This case highlights a new level of market extraction that goes beyond traditional rug pulls, demonstrating the growing sophistication of crypto fraud.
$LIBRA Scandal: A Crypto Circus — Team admits to Controlling $100M in Gains
The $LIBRA memecoin scandal has drawn criticism from analysts who accuse Kelsier Ventures and others of gaining access to $100 million from the alleged scam. With accusations of fraud swirling, critics argue that those involved are nothing more than opportunistic “clowns” running a financial circus. The scandal underscores the risks of unregulated crypto ventures, where large sums can be funneled into questionable hands with little oversight.
Milei’s $LIBRA Debacle: Economic Gamble or Corrupt Scheme?
Argentinian President Javier Milei’s launch of the $LIBRA memecoin wiped out over $4.4 billion in market cap within hours, sparking debate over whether this was a blatant scam or a misguided economic experiment. Skeptics point to Argentina’s history of corruption and economic instability, arguing that even if Milei’s intentions were genuine, public pressure would likely force the sale of these assets, leading to the same outcome — massive losses for investors. Whether a con or an economic maneuver, the event has further destabilized confidence in crypto-backed national initiatives.
Argentina’s $LIBRA Token — A Political or Economic Trap?
The launch of Argentina’s $LIBRA token by President Javier Milei ignited controversy as it erased over $4.4 billion in market cap within hours. Analysts debated whether it was a deliberate scam or a poorly managed initiative, but the outcome remained the same — massive losses for investors. Critics pointed to Argentina’s economic struggles, corruption risks, and potential political motives. Even if the intent was genuine, the pressure to utilize the funds for local development would eventually lead to liquidation, making this a high-risk gamble for those involved.
The $CAR Token — A Predictable Crypto Scam
The launch of the $CAR token, supposedly backed by the Central African Republic, quickly unraveled into a textbook crypto scam. Investigations revealed that top traders were making millions while liquidity remained dangerously low, setting up retail investors for losses. Domain registration inconsistencies and on-chain analysis exposed misaligned tokenomics, with developers secretly withholding tokens instead of locking them as promised. Despite early warnings from skeptics, many influencers promoted the token, reinforcing how easily fraudulent projects gain traction in the crypto space.
$LIBRA — The Biggest Political Rug Pull in History Piloted by Julian Peh (KIP Protocols)
Argentina’s $LIBRA token skyrocketed to a $4 billion market cap within an hour, as investors believed they were funding the country’s economic revival. However, on-chain analysis revealed alarming centralization, with 82% of the supply controlled by insiders. Panic set in as major players dumped their holdings, resulting in $87 million being siphoned away. The final blow came when President Milei deleted his promotional tweet, cementing the event as one of the largest government-associated crypto scams ever recorded.
Extracting Billions from Solana Memecoins
Recent data analysis uncovered staggering profits extracted from Solana’s memecoin ecosystem, with trading bots, insider manipulation, and MEV (Maximal Extractable Value) strategies generating billions in profits. Pump-and-dump schemes, politically linked insider trading, and algorithmic frontrunning have turned Solana into a goldmine for exploiters. As memecoins continue to thrive, retail investors remain the primary liquidity source for those orchestrating these massive financial extractions.
LIBRA Team Cashes Out $107M in Alleged Liquidity Maneuvering
The LIBRA meme coin, which rapidly reached a $4.5 billion FDV, has come under scrutiny as eight wallets linked to the team withdrew approximately $107 million by manipulating liquidity pools. Analysts warn of a concerning lack of transparency, with 82% of the supply concentrated in a single cluster. Critics argue this exemplifies the chaotic nature of crypto, where political endorsements fuel speculation while real builders struggle for funding.
Impossible Cloud Network Warns of Fake Token and Website Scam
Impossible Cloud Network (ICN) has issued a critical scam alert regarding a fraudulent website and fake ICN token launched on PancakeSwap. The project confirms that it has not released any tokens, and any claims otherwise are fraudulent. ICN urges users to verify all information through official channels and report any suspicious activity to prevent further victimization.
$HarryBōlz Meme Coin Collapses After Elon Musk’s Name Change
The $HarryBōlz token, which once soared to a $1.27 billion market cap, has crashed in what appears to be a classic rug pull. Analysts had previously flagged the token as a scam, with most wallets linked to insiders. Following Elon Musk’s social media name change, the token’s value plunged, reinforcing warnings about meme coin volatility and manipulation.
$LIGMA Token Shows High Risk of Rug Pull Due to Wallet Bundling
Investigators have uncovered suspicious bundling activity in the $LIGMA project, with the top 200 wallets holding a significant concentration of the token supply. Such centralization is a major red flag for potential rug pulls, where insiders can suddenly drain liquidity and leave retail investors with worthless holdings. Caution is advised for anyone considering trading this token.
Fake $SNOOPDOGG Token Identified as Another Rug Pull Risk
A token falsely associating itself with rapper Snoop Dogg has been exposed as a likely scam. The developers have funneled large amounts of supply into fresh wallets before launching on Raydium, a tactic often used in fraudulent schemes. The extreme centralization of holdings makes this token highly susceptible to a rug pull, and traders are advised to steer clear.
$ALPHA Token Plummets from $220M to $5M Market Cap
The $ALPHA token has been labeled the “worst chart of the week” after experiencing a catastrophic collapse from a $220 million market cap to just $5 million. The sudden decline highlights the volatility and high-risk nature of many speculative crypto assets, where market enthusiasm can evaporate almost overnight.
Dave Portnoy’s $Jailstool Token Tanks 74% Amid Insider Concerns
The $Jailstool token, promoted by Dave Portnoy, has plunged 74% in just 24 hours. Analysts uncovered troubling details, including three wallets holding more than the largest liquidity pool and a deployer address linked to 41 prior rug pulls. With the main promoter openly boasting about extracting money from followers, this token appears to be yet another exploitative cash grab.
Scammer Uses Crypto Rug Muncher’s Name for $RUG Token Fraud
Crypto Rug Muncher has publicly distanced themselves from the $RUG token, calling it yet another scam orchestrated by the known fraudster @cryptobeastreal. The token is being falsely associated with reputable figures in an attempt to mislead investors. As always, traders are urged to verify legitimacy before engaging in any new projects.
$SFM Token Rug Pulls After Hitting $8 Billion Market Cap
The latest iteration of a fake Safemoon ($SFM) token has rug-pulled, following a pattern of high-market-cap scams that lure in investors before abruptly crashing. Analysts warned in advance that the token was a bundled scam with artificial price inflation. With more of these fraudulent projects emerging, traders should be cautious of assets that rapidly gain massive valuations.
$ASHLEY Token Follows Scam Pattern with High-Risk Setup
The meme coin $ASHLEY, labeled “ElonM’s Baby Momma,” has been flagged as a near-certain rug pull. Following a pattern seen in recent scams, the token experienced rapid price increases before an inevitable crash. Traders are advised to recognize these “stairway to heaven” charts as clear indicators of impending fraud and to avoid participation in such high-risk schemes.
Tinder Swindler: A Bundled Crypto Scam
The $TIND token has been flagged as a likely bundled scam, with investigations revealing that the top 150 wallets involved are freshly created and seemingly dedicated exclusively to this project. Such extreme centralization increases the risk of price manipulation and a potential rug pull. Investors are advised to steer clear of this project to protect their assets.
NELK Boys Token: A Rug Pull in Disguise
The $NELK token is suspected to be another bundled scam, with early buyers holding over 80% of the supply. Analysis of wallet activity has linked many top holders to prior rug pulls, further raising red flags. This level of control by insiders increases the likelihood of market manipulation and an eventual exit scam. Investors should proceed with extreme caution or avoid the project altogether.
Broccoli’s Fraud-Filled Landscape
The $Broccoli token’s ecosystem is currently overrun with multiple scam tokens, highlighting the increasing number of fraudulent projects in the space. As new scams continue to pop up, traders are urged to stay vigilant and conduct thorough research before investing in any low-cap tokens.
DaBaby’s Alleged Crypto Rug Pull
Rapper DaBaby has been accused of orchestrating a rug pull with the $BABY token, abandoning the project shortly after promoting it. This follows a familiar trend of celebrity-backed crypto scams that exploit fan enthusiasm for quick profits. Investors should be wary of tokens endorsed by influencers without credible backing.
Fake MrBeast Tokens Flood the Market
Despite publicly denying any involvement in launching a crypto token, scam projects continue to falsely associate with MrBeast. His firm stance against these frauds underscores the importance of verifying token legitimacy directly from official sources. Any token claiming to be linked to MrBeast should be assumed fraudulent unless explicitly confirmed by him.
Analyst Takeaway: From exploiting a child’s cancer battle to rigging liquidity in the Solana ecosystem, the level of deception is reaching new lows. Ronnie Magrehbi’s grift shows that scammers will exploit anything — human sympathy, celebrity connections, even charity — to cash out. Meanwhile, the $LIBRA and $CAR token debacles prove that political and economic instability breed the perfect conditions for crypto fraud. Whether it’s a rug pull, a liquidity manipulation scheme, or a government-backed disaster, one thing is clear: the people behind these scams aren’t amateurs. They’re calculating, opportunistic, and banking on the fact that victims will always chase the next big opportunity.
Gaming
Web3 Gaming’s Identity Crisis
Sinjin Jung’s viral rant critiques the current state of Web3 gaming, arguing that it operates more like a speculative casino than a genuine gaming ecosystem. He asserts that most so-called “Web3 gamers” are actually traders or gamblers rather than players seeking engaging experiences. His call for a gaming-first approach, rather than token-driven hype, reflects growing frustration with the industry’s struggle to attract mainstream gamers.
Analyst Takeaway: Web3 gaming’s existential crisis is nothing new, but Sinjin Jung’s rant highlights a deeper problem — most “players” aren’t gamers; they’re speculators riding hype cycles. The industry keeps chasing liquidity over engagement, and until a game emerges that captivates players without dangling tokens as bait, mainstream adoption will remain a pipe dream. Web3 devs need to stop building for traders and start building for gamers.
On-Chain
Ethereum Foundation Dumps vs. Pumdotfun Token Sales
A striking similarity has been observed between Ethereum Foundation’s token sell-offs and the way developers are offloading Pumdotfun tokens. This raises concerns about strategic price manipulation and insider profits at the expense of retail investors. The patterns suggest coordinated efforts to maximize returns while keeping public perception under control.
PancakeSwap v3 Exploit: Liquidity Pool Manipulation
A security alert from SlowMist has revealed a vulnerability in PancakeSwap v3 that allows attackers to manipulate liquidity pools by creating artificially skewed price points before a token’s migration. The exploit enables malicious actors to drain liquidity from unsuspecting projects, leading to significant financial losses. Token teams must implement safeguards to prevent such attacks and protect their ecosystems.
GMGN Identifies $LIBRA as a Serial Rug Pull
The GMGN platform flagged the deployer behind $LIBRA as a repeat scammer involved in multiple rug pulls, exposing the fraud before many investors realized. Crypto analyst Crypto Rug Muncher praised GMGN’s ability to detect such scams early, urging traders to leverage its tools to avoid falling victim. The incident highlights the ongoing risk of deceptive crypto projects and the value of real-time scam detection platforms.
Trader Loses $3.2M Holding $LIBRA Despite Warnings
A trader who spent $4.5 million acquiring $LIBRA is now sitting on a $3.2 million loss but refuses to sell, exemplifying the dangers of ignoring early scam warnings. The case underscores how emotional decision-making and sunk-cost fallacy can lead to devastating losses in crypto markets, especially when dealing with high-risk tokens flagged for fraud.
Analyst Takeaway: The Ethereum Foundation’s strategic dumps, the PancakeSwap exploit, and the $LIBRA rug pull all reinforce a hard truth: the game is rigged against retail. Whether it’s foundations, insiders, or scammers, those with asymmetric knowledge are always first to exit, leaving the average trader holding the bag. The only defense is ruthless skepticism — if you’re not early, you’re exit liquidity.
News
Anti-Corruption Politician of Argentina (President Melei) Launches Token for Personal Gain
A politician who built his campaign on fighting government corruption is now accused of leveraging his position to launch a cryptocurrency for personal profit. The move, likely aimed at generating nine-figure returns, has sparked backlash, raising questions about hypocrisy and the exploitation of political influence in the crypto space.
Competitor Caught Stealing DeFi Data from DefiLlama
A VC-backed competitor was caught plagiarizing data from DefiLlama without attribution. The discovery was made when DefiLlama injected fake data into a dead protocol, only to find the manipulated figures appearing on the competitor’s site. This incident highlights the challenges of maintaining intellectual property integrity in Web3, where open-source data is often exploited without credit. App devs say it's a glitch in their attribution identification, time will tell.
No Experts, Just Survivors: A Reality Check on Crypto & Web3
Crypto analyst Mizzy argues that no one in the industry has truly mastered long-term product-market fit (PMF) or scaled a successful Web3 project beyond Bitcoin. He criticizes the abundance of so-called “experts” who monetize narratives without delivering tangible results, emphasizing the need for deeper innovation instead of relying on hype and speculation.
FaZe Banks Manipulated in $HAWK Token Debacle
FaZe Banks, who attempted to rehabilitate Hailey Welch’s crypto reputation through a podcast, found himself betrayed when her team leaked the episode without approval and manipulated the price of $HAWK. The fiasco, described as a “trainwreck,” exemplifies how reputational damage control in crypto often backfires, worsening public perception.
Analyst Takeaway: Milei’s hypocrisy, data theft in DeFi, and the crypto influencer drama all point to a common theme — credibility in Web3 is an illusion. The industry is built on narratives, and those who control them control the flow of money. Whether it’s politicians, VCs, or influencers, their playbook is simple: extract value, spin the story, and move on before the fallout.
Policy
U.S., U.K., and Australia Sanction Zservers for Aiding Ransomware
Zservers, a Russia-based bulletproof hosting provider, has been sanctioned by the U.S., U.K., and Australia for facilitating ransomware operations, including those of LockBit. Authorities identified Zservers as a crucial part of the cybercrime supply chain, hosting illicit activity across multiple jurisdictions. The sanctions mark a significant move in disrupting cybercriminal infrastructure and limiting ransomware operators’ capabilities.
The Jailed IRS Crypto Investigator
Tigran Gambaryan, a former IRS agent renowned for his expertise in crypto investigations, was arrested in Nigeria on money laundering charges and imprisoned. Throughout his ordeal, he maintained secret communications with journalist Andy Greenberg, offering insights into his case. The situation has drawn criticism, with figures like ZachXBT condemning Nigeria’s government for corruption and vowing not to assist in related investigations. Greenberg’s detailed report delves into Gambaryan’s experiences, raising concerns about international legal battles involving crypto enforcement. Full story: https://www.wired.com/story/untold-story-crypto-crimefighters-descent-nigerian-prison-binance/
Political Crypto Scandal: Milei’s Alleged Rug Pull
Argentinian President Javier Milei may become the first world leader to face a political corruption trial tied to a crypto rug pull involving the token $LIBRA. While details remain scarce, the allegations could have significant political and legal consequences, bringing further scrutiny to the intersection of crypto and governance.
Analyst Takeaway: Sanctioning Zservers is a win for law enforcement, but ransomware groups will just migrate to another bulletproof host. Meanwhile, Gambaryan’s case shows how easily crypto enforcement gets tangled in geopolitics. And if the allegations against Milei hold up, we’re looking at the first head of state to execute a rug pull — making crypto’s intersection with politics messier than ever.
Tools
SECRET Weapon in Solana Scam Resurgence
Despite previous setbacks, scammers are aggressively returning to Solana, spending heavily on Dexscreener ads to promote fraudulent projects. This resurgence raises concerns about the effectiveness of current scam prevention measures, as bad actors continue to exploit DeFi platforms for financial gain.
Analyst Takeaway: The return of scammers to Solana via Dexscreener ads proves one thing: fraudsters adapt faster than defenses. Scam prevention measures in DeFi remain reactionary, and as long as platforms profit from illegitimate activity, there’s little incentive to stop it. Retail investors need to wise up — by the time a scam gets flagged, it’s already too late.
Research
Crypto Hacks and Scams Surge in 2024
Crypto-related cybercrime is escalating, with total losses in 2024 surpassing $3.01 billion — a 15% increase from the previous year. Ethereum remains the primary target, while hackers are shifting towards exploiting weak security practices. Phishing scams and laundering activities are also on the rise, with hackers washing over $1.3 billion in stolen funds. May saw the worst spike, with $574.6 million lost across 28 hacks, underscoring the growing vulnerability of the crypto space.
Insider Trading and the Crypto Culture Problem
Crypto security analyst Beau criticizes investors who knowingly buy into coins shilled by insider traders, arguing that they contribute to the problem. The discussion highlights the rampant speculative gambling in crypto, where many only complain about market manipulation when they end up on the losing side.
$PENGU: The Anti-Scam Memecoin Movement
The Pudgy Penguins ($PENGU) community is positioning itself as a legitimate alternative to the exploitative memecoin culture, emphasizing stability, long-term vision, and community-driven growth. With significant on-chain engagement and physical brand expansion, $PENGU aims to offer crypto investors something “real” amid the market’s cycle of pump-and-dumps.
The “Up-Only” Token Debate
A discussion erupted after a protocol claimed to have implemented an “up-only” token mechanism, sparking skepticism and humor within the crypto community. While some argue such a mechanism is theoretically possible under specific conditions, others view it as another iteration of overhyped tokenomics. The exchange, featuring figures like 0xngmi and Andre Cronje, highlights the ongoing tension between financial engineering and market reality in DeFi.
The DeFAI Bull Market: A New Crypto Era Begins
The DeFAI (Decentralized Finance + AI) sector is poised to lead the next crypto bull market, with analysts arguing that the current rally is just the beginning. While Bitcoin has surged, altcoins — including DeFAI projects — have yet to experience the typical euphoric market cycle. With AI dominating the tech world and DeFi proving its strength in past cycles, DeFAI is positioned as the next major narrative. Early movers like @HeyAnonai, @modenetwork, and @orbitcryptoai are already delivering real-world applications, while AI-focused trading agents and data layers gain traction. Institutional money, such as the U.S. government’s $500 billion AI initiative, will further fuel this trend. If Bitcoin dominance declines as expected, the DeFAI bull market could accelerate, making 2025 the year of DeFAI and AI in crypto.
Big Tony: The Self-Made AI Trader Defying Venture Capital
In a world dominated by AI hype and VC-funded narratives, one AI trading agent stands apart: Big Tony. Unlike Silicon Valley-backed projects filled with generic chatbots and recycled Google results, Big Tony is an autonomous AI that trades, posts, and profits without corporate backing. Built on Cod3x Create, he represents a proof-of-concept for decentralized AI-driven finance. While still in an early evolutionary stage — akin to a caveman discovering fire — Big Tony’s rivals remain primitive in comparison. His success challenges the traditional crypto-AI landscape, proving that decentralized, independent AI can thrive without the influence of powerful investors. As the AI trading space evolves, Big Tony’s journey is just beginning.
The Cost of “Expensive Money” in VC Investing
Jon Cooks emphasizes the importance of conducting thorough reference checks on potential investors to avoid “expensive money” — capital that comes with hidden costs, misaligned incentives, or unnecessary friction. Founders should scrutinize investors’ value-add claims, verify exchange connections, and ask portfolio companies whether they would accept funding from them again. Gnoc reinforces this by highlighting how some investors extract fees for advisory services or steer founders toward decisions that benefit the investor rather than the company. Meeting investors in person, when possible, remains an invaluable step in assessing their true intentions and reliability.
Essential Security Practices for Web3 Users
IOC shares a 10-step security guide to protect individuals navigating Web3, covering everything from browser safety tools and VPNs to password managers, hardware wallets, and wallet security services. The post encourages users to assess their own setups to identify vulnerabilities. Warden adds that while Malwarebytes relies on signature-based detection, its approach stops unknown threats at the kernel level before they can cause harm. These layered security measures highlight the necessity of proactive defense strategies against evolving Web3 threats.
Blind Trust in Crypto Influencers Costs You
PixOnChain calls out the cycle of blind trust in crypto influencers who have a track record of poor financial decisions and pump-and-dump schemes. Despite previous failures — such as promoting meme coins, panic-selling Bitcoin at losses, and endorsing projects that collapsed — some investors continue to follow their advice. Fabsverse points out that at some point, individuals need to take responsibility for their own decision-making rather than blaming the grifters. The takeaway is clear: do your own research, question narratives, and avoid falling for the same traps repeatedly.
Analyst Takeaway: Crypto crime isn’t just growing; it’s evolving. Insider trading is the norm, not the exception. Memecoins are marketing stunts disguised as communities. And the rise of DeFAI signals a new wave of speculation, where AI hype replaces past cycles of DeFi and NFTs. The lesson? The narratives change, but human greed stays the same.
Conclusion
In wrapping up, it’s clear that the crypto landscape is as perilous as it is promising. Our deep dive reveals a market where advanced hacks, insider rug pulls, and deceptive phishing schemes coexist with the disruptive potential of AI-driven finance. While scammers are now using government-verified X accounts to add a veneer of legitimacy to their frauds. All adds to the political entanglements — exemplified by the controversial $LIBRA token and Milei’s risky maneuvers — underline how the merging of state power and crypto can spiral into widespread instability. Yet, amidst the chaos, innovations like DeFAI and Big Tony offer a glimpse of a more resilient future, provided investors exercise rigorous due diligence and skepticism. The key takeaway? In this high-risk arena, robust security practices and a constant critical eye are not just advisable — they’re essential for survival.
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