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LINK $8.64 -2.97%
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Data: Losses from fraud cases in the cryptocurrency sector reached $370 million in January, hitting a nearly 11-month high

According to FinanceFeeds, Uniswap founder Hayden Adams has warned that search engine ads impersonating Uniswap continue to appear, resulting in users losing all their high-value crypto assets. Scammers purchase ads for keywords like "Uniswap" to place fake websites at the top of search results, with designs that closely resemble the official site. Once users connect their wallets and authorize transactions, their funds can be immediately transferred away.These types of attacks rely on user signature authorization rather than protocol-level vulnerabilities. An X platform user "Ika" reported losing crypto wallet assets worth hundreds of thousands of dollars after clicking on a fake link in the search results. Screenshots he disclosed show that the fake link was at the top of the search results, making it highly misleading. Similar incidents occurred in October 2024, where scammers replicated the Uniswap website interface and induced users to connect their wallets through subtle button changes.Data from security firm CertiK indicates that in January 2026, the crypto industry lost approximately $370.3 million due to exploits and scams, marking a nearly 11-month high and nearly four times the losses of January 2025. One single social engineering attack resulted in losses of about $284 million. A total of 40 related security incidents were recorded in January. Analysis points out that current crypto asset losses are increasingly stemming from phishing links, false ads, and social engineering attacks, rather than underlying smart contract vulnerabilities. As the DeFi ecosystem expands, brand impersonation and interface fraud are becoming significant risks affecting user trust.

A man was sentenced to 40 months in prison in the U.S. for participating in a cryptocurrency scam, involving amounts of several million dollars

According to the official website of the U.S. Department of Justice, the United States Attorney's Office for the Eastern District of Texas announced that a Chinese national, Fei Liao, has been sentenced to federal prison for participating in the laundering of funds obtained from a cryptocurrency investment scam. He pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in prison by U.S. District Judge J. Campbell Barker in 2026.Liao was also ordered to forfeit over $2.3 million in seized funds and to pay more than $2.8 million in restitution to victims. The case was announced by U.S. Attorney Jay R. Combs for the Eastern District of Texas and was investigated by the Tyler branch of the United States Secret Service, with federal prosecutor Robert Austin Wells handling the prosecution. Court documents show that Liao assisted in laundering funds from "Pig Butchering" and other cryptocurrency investment scams by setting up shell companies and bank accounts with others.Such scams typically contact victims through social media, dating platforms, or unsolicited phone calls, establishing a trust relationship before inducing them to invest in cryptocurrency. After victims transfer funds to accounts controlled by the scammers, the fraudulent platform displays high returns, encouraging further investment, ultimately leading to victims being unable to withdraw funds and suffering significant losses.Law enforcement agencies remind individuals that if they encounter similar scams, they can report them to the Internet Crime Complaint Center (IC3) and provide as much information as possible, including the name of the investment platform, cryptocurrency addresses, transaction hashes, bank account information, and contact details of the suspects, while also retaining communications and transfer records with the scammers.
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