# WHY IT MATTERS

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#### BYBIT could be saved with $FAGOT

In less than a week ago, when **BYBIT**, a top-three global exchange, **lost nearly $1.6 billion USD** in a historic hack, the culprit was a **compromised Safe frontend exploited** by the Lazarus Group.&#x20;

**But this tragedy could have been avoided with $FAGOT.**&#x20;

As the First AI-Powered Gatekeeper Of Transaction, $FAGOT checks if the **frontend and backend smart contract displays align**, thwarting phishing scams disguised as legit trades.&#x20;

By ensuring every transaction is secure and transparent, <mark style="background-color:green;">**$FAGOT would have stopped the attack in its tracks, saving Bybit from disaster.**</mark>

Over the past three years, blockchain-related fraud (including scams and hacks) has been significant, though the nature of attacks has shifted.&#x20;

**Total Financial Damage:** Combining hacks, scams, and frauds, estimates for total crypto losses in the 2021–2024 period run into  **$6 billion+ dollars !**&#x20;

<figure><img src="https://852840034-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnGkNI04oJaBXsfRhOci1%2Fuploads%2FzKbrsBHvN31QSsgOCVSN%2FDALL%C2%B7E%202025-02-21%2015.18.38%20-%20A%20highly%20realistic%20digital%20image%20illustrating%20blockchain%20scams%2C%20phishing%20attacks%2C%20and%20pig%20butchering%20scams.%20The%20image%20depicts%20a%20cybercriminal%20in%20a%20dim.webp?alt=media&#x26;token=7124350a-7e7a-421c-a653-92637127863a" alt=""><figcaption></figcaption></figure>

**Shifts in Fraud Tactics:** While total losses fell in 2023, **scams became more targeted and sophisticated**. Traditional hacks (like exploiting smart contract bugs in DeFi protocols) have been gradually supplemented or even overtaken by **social engineering and phishing-based attacks**. Notably, ***pig butchering*****&#x20;scams** (long-con schemes where victims are groomed online and convinced to invest in fake crypto platforms) [**surged \~40% in 2024**](https://www.chainalysis.com/blog/2024-pig-butchering-scam-revenue-grows-yoy/)​, becoming one of the largest scam categories by revenue. These typically involve victims willingly sending cryptocurrency to scammers under false pretenses of “investment,” which is outside the scope of on-chain technical exploits but adds to the fraud tallies ([victims of such scams have collectively lost **billions** in recent years](https://www.chainalysis.com/blog/address-poisoning-scam/)​).&#x20;

On the technical side, new attack methods emerged or grew in prominence, such as **address poisoning** and *ice phishing* (tricking users into signing approvals). The availability of **plug-and-play scam kits** on the darknet lowered the bar for entry – for example, complete address-poisoning toolkits and wallet drainer templates can be bought and used with minimal coding knowledge​. &#x20;

This “professionalization” of crypto fraud has led to a **diversification of scam methods** and a wider range of attackers. Scammers also increasingly focus on **high-value targets**; both address poisoning and certain phishing campaigns specifically sought out [whales with large balances or valuable NFT](https://blockchain.news/news/address-poisoning-scams-growing-threat-crypto-world)[s​](https://blockchain.news/news/address-poisoning-scams-growing-threat-crypto-world), aiming for big payouts from a single success.

​For user-focused scams alone (excluding protocol hacks), 2023 saw *hundreds of millions* stolen (e.g., \~$300M via phishing as noted, plus large sums from pig butchering and other fraud). 2024’s numbers were influenced by a few very large incidents – such as the $68M address poisoning attempt and some nine-figure DeFi hacks – but early reports suggested the scam ecosystem continued to grow in sophistication and reach. For instance, on-chain data in mid-2024 showed a dramatic jump in funds sent to address-poisoning scams (15,000%+ growth) and sustained high volumes of phishing and “crypto drainer” activity.&#x20;

**By contrast, some types of exploits (e.g., direct protocol hacks) saw reduced success thanks to better audits and security practices. The net effect is that&#x20;*****fraud hasn’t disappeared; it has evolved*****, with criminals shifting to the paths of least resistance – often, that means targeting human mistakes and trust.**

In summary, **blockchain fraud from 2022 to 2025 has been marked by a cat-and-mouse dynamic**. Scammers developed novel schemes – from address poisoning to elaborate phishing dApps – to exploit human error and system loopholes, causing **billions in cumulative losses**.&#x20;

**This is exactly why we created $FAGOT. We provide the simplest user experience, empowering users with top-tier security to protect their assets and prevent unauthorized fund transfers!**