Surge in Crypto Rugpull Losses: Key Insights from Q1 2025

In Q1 2025, rugpull scams in the crypto sector resulted in nearly $6 billion in losses, a dramatic increase of 6,500% compared to the same period in 2024. The Mantra incident accounted for 92% of these losses. Despite this surge, the frequency of reported rugpulls has decreased by 66%, indicating a changing landscape for crypto scams.

In the first quarter of 2025, crypto rugpull scams resulted in devastating losses close to $6 billion, reflecting a staggering 6,500% increase from $90 million in the same timeframe in 2024, as detailed in a report by DappRadar. The sharp rise in losses highlights a major security concern within the Web3 landscape, prompting a need for increased vigilance among investors.

Notably, a significant portion of this loss is attributed to a singular event, the Mantra incident, accounting for 92% of the total damages. According to DappRadar’s blockchain analyst Sara Gherghelas, this incident stands out as one of the most substantial scams recorded in recent memory, indicating broader vulnerabilities in project accountability.

Interestingly, while losses from rugpulls have surged, the number of such scams has decreased significantly. Only seven incidents have been documented in 2025, representing a 66% drop compared to 21 incidents reported in early 2024. This discrepancy between loss magnitude and incident frequency raises questions regarding the evolving tactics used by scammers.

Gherghelas further illustrates the precarious nature of some projects by citing the Mantra Network case, which showed an all-time high of a mere 64 Unique Active Wallets in December 2024. The sporadic level of daily wallet interactions, often between 1 and 11, suggests minimal user engagement, which should serve as a warning sign for potential investors assessing project growth and adoption.

Compounding the issue, irregular transaction patterns were noted, with some days experiencing spikes up to 66 transactions, while others reported zero activity. Such inconsistent data is often indicative of “inorganic engagement,” a common trait in decentralised applications (dapps) that may be artificially manipulated to project higher activity levels than actually exists, according to Gherghelas.

Overall, the data from DappRadar raises important considerations regarding investor precautions and the necessity for enhanced scrutiny of new projects in the cryptocurrency sphere. Understanding these evolving scam tactics can help mitigate risks for potential investors.