WHY IT MATTERS
Why do we create $FAGOT to protect $bn of dollars from scams.
Last updated
Why do we create $FAGOT to protect $bn of dollars from scams.
Last updated
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.
But this tragedy could have been avoided with $FAGOT.
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.
By ensuring every transaction is secure and transparent, $FAGOT would have stopped the attack in its tracks, saving Bybit from disaster.
Over the past three years, blockchain-related fraud (including scams and hacks) has been significant, though the nature of attacks has shifted.
Total Financial Damage: Combining hacks, scams, and frauds, estimates for total crypto losses in the 2021–2024 period run into $6 billion+ dollars !
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 scams (long-con schemes where victims are groomed online and convinced to invest in fake crypto platforms) surged ~40% in 2024, 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).
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.
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 NFTs, 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.
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 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.
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!
