The decentralized finance (DeFi) ecosystem saw a puzzling contradictory spike from March–June 2025. And although the number of scams reported fell sharply, the financial harm caused by these fraudulent lotteries, sweepstakes, and prize promotions hit record highs. This shift marks a step backward in a more troubling trend for DeFi. As these scams happen less frequently, they are becoming more advanced and damaging.
Aggravating this situation, the data shows a drastic reversal from 2024 to 2025. In the first four months of 2025 alone, almost $6 billion has been stolen through fraud in DeFi. The vast majority of this jaw-dropping cost comes from just one occurrence. The former “Mantra case” accounted for an even more egregious 92% of the overall losses.
A Surge in Sophistication
In 2024, rug pulls and other fraudulent schemes caused collective losses of an estimated $90 million. In early 2025, this number exploded to $6 billion. This is a 6,499% increase in both the scale and the impact of DeFi scams.
The alarming increase in losses is due in part to greater scam sophistication. Although the volume of these incidents went down, the scams themselves were much more effective at causing financial harm.
Decline in Frequency
In the first quarter of 2025, instances of fraud occurring in the DeFi space decreased by 98%. They’re down 66% over the same time in 2024. During the initial three months of 2024, there were already 21 documented occurrences. This number decreased to only seven of those episodes in the same time-frame of 2025.
This drop indicates that although scams are increasingly effective, they’re less prevalent. The attention is moving towards bigger, more complex schemes that can rip off much larger amounts of money.
The Importance of Vigilance
The recent Mantra case underscores just how quickly one bad event can result in monumental losses to the DeFi environment. It should be an eye-opening reminder of the dangers that come with it. This highlights the need for proactive oversight, thoughtful review and scrutiny, and the deployment of accurate monitoring technologies.
We know that scams are getting more advanced. Thus, users and institutions participating in DeFi need to ensure a strong security foundation and robust risk management practices. Access to clear information and strong monitoring tools will be key in crossing this new and complex landscape.
