The year 2025 has been a challenging one for the cryptocurrency ecosystem, with concerns about user safety on the rise. A recent report from DappRadar has revealed a shocking increase in crypto rugpulls, which have siphoned off nearly $6 billion from the market since the beginning of the year. This represents a staggering 6,499% surge from the comparatively small $90 million lost during the same period last year.
The bulk of this massive loss, a whopping 92%, can be attributed to a single incident involving Mantra Network, a DeFi project on the Polygon blockchain. The suspected rug pull orchestrated by Mantra has become one of the most significant scams in recent crypto history, with investigations still ongoing.
Despite the astronomical financial toll of rug pulls in 2025, the frequency of such incidents has actually decreased. DappRadar reported just seven rugpulls in the early months of 2025, a significant drop from the 21 recorded during the same timeframe in 2024. This decline in occurrence may seem like progress, but it underscores a more insidious trend – scammers are no longer content with quick gains; they are now constructing elaborate traps capable of dismantling entire ecosystems overnight.
The Mantra Network case stands out for several reasons, chief among them being the sheer magnitude of the losses and the overlooked warning signs. The project initially garnered attention for its promises of DeFi innovation and cross-chain utility, securing listings on platforms like DappRadar. However, a closer look at on-chain data revealed concerning patterns that should have raised red flags for vigilant users.
For instance, despite a spike in Unique Active Wallets (UAW) in December 2024, engagement levels remained consistently low, with daily wallet interactions ranging from 1 to 11 and sometimes even dropping to zero. Transaction data displayed erratic behavior, with fluctuations suggesting inorganic activity like wash trading or insider manipulation. Moreover, analysis of Mantra’s contract data on PolygonScan revealed troubling wallet distributions and centralization patterns, precursors to liquidity withdrawals and potential insider dumping.
The lack of verified smart contracts and open GitHub repositories further muddied the waters around Mantra’s legitimacy, leaving a trail of red flags that went unnoticed by many investors.
The surge in rugpull-related losses in 2025 reflects a broader shift in the threat landscape. While rugpulls were predominantly associated with NFT projects, DeFi experiments, and meme tokens in Q1 2024, the focus has now shifted towards memecoins. Additionally, the North American Securities Administrators Association (NASAA) has identified crypto and social media scams as the top threats to retail investors in 2025.
Scammers are leveraging social media platforms to promote fraudulent investments, using AI-generated content and emotional manipulation tactics such as FOMO and romance-based scams. These tactics have already resulted in significant losses, with pig butchering scams alone causing over $3.6 billion in damages in 2024.
In light of these evolving threats, real-time vigilance is crucial for investors and users in the cryptocurrency space. While it may be challenging to eradicate rugpulls entirely, staying informed and aware of potential red flags can help mitigate their impact. The Mantra Network incident serves as a stark reminder of the dangers lurking in the crypto market, underscoring the need for increased caution and due diligence in navigating this volatile landscape.