According to cybersecurity firm CertiK, in the month of April 2023, the crypto market experienced a series of scams, exploits, and hacks, resulting in a staggering loss of $103 million.
CertiK, a leading provider of blockchain security solutions, conducted a comprehensive analysis of the crypto market during April and found that the number of scams, exploits, and hacks had increased significantly compared to the previous month. The report also revealed that these attacks were targeted at a wide range of cryptocurrencies, including Bitcoin, Ethereum, and various altcoins.
CertiK reports massive losses in cyber crimes
On April 30, the crypto security and auditing firm CertiK published a roundup of exploits, scams, and hacks for the month of April. CertiK disclosed that a total of $103.7 million was lost in April, bringing the year-to-date total to $429.7 million.
According to CertiK the month was notably marred by significant crypto exploits, such as the $25.4 million lost on April 3 due to an exploit of several MEV trading bots. In addition, $22 million stolen in a hot wallet exploit at the Bitrue exchange. Also, the $13 million lost due to the hack of the South Korean GDAC exchange.
The rise in cryptocurrency scams and hacks can be attributed to the increasing popularity of digital assets and the lack of regulatory oversight in the market. Cybercriminals are taking advantage of the anonymity and decentralized nature of cryptocurrencies to carry out these attacks, and the lack of security measures on many cryptocurrency platforms is making it easier for them to do so.
The total money lost to crypto and DeFi exploits in the month was $74.5 million. According to CertiK, this accounts for over half of the total $145 million exploited in the first four months of the year. In addition, roughly $20 million was lost to flash loan attacks throughout the month, primarily by Yearn Finance, after a hacker exploited an old smart contract on April 13.
The blockchain security firm reported that total cash lost to exit scams reached $9.4 million in the month, with Merlin DEX losing $2.7 million as the top exit fraud. CertiK said on April 26 that it was looking into a “potential private key management issue” at the exchange.
Exit scams take a different swing to the market
Furthermore, the exit scam occurred after CertiK audited the protocol and warned about centralization issues. Following the attack, CertiK launched a compensation plan in which it urged the rogue developer to return 80% of the stolen funds in exchange for a 20% white hat bounty.
In April, there were over 50 crypto exploits, scams, hacks, and rug pulls, according to De.Fi’s Rekt Database. Furthermore, a large proportion of them were memecoin rug pulls.
The most recent was the Polygon-based Ovix protocol, which was attacked with a flash loan on April 28 and lost $2 million. Market analysts recommend that crypto users take steps to protect themselves from these types of attacks, such as using two-factor authentication, keeping their private keys secure, and using reputable exchanges and wallets.
The rise of crypto scams and hacks is a growing concern for the crypto community. With the market becoming more mainstream and attracting new investors, it is crucial that security measures are put in place to protect users from these types of attacks. The crypto industry needs to work together to develop better security standards and practices to ensure the safety of investors and the long-term success of the market.