Crypto Security Firm CertiK Reports $103.7M Loss Due to Exploits, Hacks, and Scams in April Alone

In the month of April, the crypto industry witnessed a significant amount of money lost due to vulnerabilities, frauds, and hacks. According to a report by CertiK, a crypto security and auditing company, the total loss amounted to $103.7 million, bringing the year's overall loss to $429.7 million. With the increasing number of crypto-related scams, hacks, and rug pulls, it is crucial for users and investors to exercise caution and conduct extensive research before investing in any cryptocurrency project.

The Rise of Crypto Exploits, Hacks, and Scams The month of April saw several significant hacks, including the Bitrue exchange hot wallet exploit, which resulted in a loss of $22 million, and the South Korean GDAC exchange hack, which cost investors $13 million. Additionally, the exploitation of several MEV trading bots on April 3 led to a loss of $25.4 million. The overall losses incurred due to crypto and DeFi exploits during the month amounted to $74.5 million, which is almost half of the total amount lost in the first four months of the year.

Exit scams were another contributing factor to the large amount of money lost in April, with losses totaling $9.4 million. Merlin DEX was responsible for the most successful exit scam, resulting in a loss of $2.7 million. This was particularly alarming since the protocol had been audited by CertiK, which had previously warned about centralization problems. In response, CertiK implemented a compensation plan, demanding that the malicious developer return 80% of the stolen funds and offering a white hat bounty of 20% of the total amount.

Flash loan attacks were also prevalent in April, resulting in losses of around $20 million. Yearn Finance was the primary victim of these attacks, with a hacker exploiting an outdated smart contract on April 13. The Rekt Database maintained by De.Fi documented over fifty crypto-related scams, hacks, and rug pulls, with Memecoin rug pulls accounting for a significant chunk of the total. The flash loan assault against the Polygon-based Ovix protocol, which resulted in a loss of $2 million, was the most recent incident documented in the database.

The Need for Stronger Security Measures With the increasing number of crypto-related exploits, hacks, and scams, it is vital for users and investors to exercise caution and conduct due diligence before investing in any cryptocurrency project. Auditing companies such as CertiK play a critical role in determining the nature of any possible security threats and elevating the level of industry-wide security.

Takeaways:

The crypto industry witnessed a loss of $103.7 million due to exploits, hacks, and scams in April alone.

Crypto and DeFi exploits accounted for losses of $74.5 million, with flash loan attacks resulting in losses of around $20 million.

Exit scams were responsible for losses totaling $9.4 million, with Merlin DEX responsible for the most successful exit scam.

Users and investors must conduct extensive research and due diligence before investing in any cryptocurrency project.

Auditing companies like CertiK are crucial in identifying possible security threats and enhancing industry-wide security.

Conclusion:

The increasing number of crypto-related exploits, hacks, and scams is a cause for concern in the crypto industry. While auditing companies like CertiK play a crucial role in identifying possible security threats, it is the responsibility of users and investors to exercise caution and conduct due diligence before investing in any cryptocurrency project. By taking appropriate security measures, the industry can protect itself against future exploits, hacks, and scams, thereby increasing the confidence of users

Hey, it's CryptoPatel here!

I'm passionate about providing you with the latest insights and analysis on the world of cryptocurrencies.

If you enjoy my content and want to show your support, please like, share, and follow me for more high-quality updates.

Thank you for your support, and let's continue to stay connected for more exciting content!

LIKE ❤️

Share ⏩

Follow 🤝

#eth2.0 #Binance #Airdrop #CertiK #CryptoPatel

A hacker acquired the private key for liquidity management through a sophisticated social engineering attack. This key breach allowed the hacker to create new tokens, subsequently liquidate them, and drain financial resources.
Concentric Under Attack: Protocol Misuse on Arbitrum
Through the misuse of the private key, the Concentric application, managing liquidity on the #Arbitrum network, was compromised. The attacker modified the protocol's vaults using this key, created new LP tokens, and then depleted their assets, as reported by the Concentric team.
 

 
Security Warning for Concentric Users
Users are urged to revoke all approvals for vault addresses listed in the protocol's documentation as a precautionary measure.
 Financial Losses and Possible Link to Another Attack
The security platform #CertiK reported losses exceeding $1.8 million. Moreover, the attacker's wallet is linked to a wallet that previously exploited the decentralized exchange OKX, suggesting a possible connection between the two incidents.
 

 
Response and Investigation by the Concentric Team
The Concentric team announced the commencement of a thorough investigation and is preparing a post-mortem report with a plan to address vulnerabilities. They emphasize their commitment to restoring the security and integrity of the Concentric protocol.
Growing Popularity of Liquidity Management Protocols
Popularity Increase Following Uniswap's 2021 Innovation
Liquidity management protocols, which allow setting price ranges and rebalancing funds on decentralized exchanges, gained popularity following the introduction of "concentrated liquidity" by Uniswap. This innovation allows liquidity providers to better control the prices at which their assets can be traded.
 Another Case of Attack: Gamma Protocol
Another liquidity manager, Gamma Protocol, faced an attack in early January, where nearly half a million dollars were drained through vulnerabilities in smart contracts. These two attacks appear to be unrelated, as they employed different methods.
#BTC #ETF
 Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
 

The Web3 security company CertiK has unveiled a widespread scam operation across various Telegram channels, leading to significant financial losses and undermining trust in the cryptocurrency space.

Telegram has become a popular platform for communication among cryptocurrency enthusiasts, which scammers exploit by hiring actors to promote fake cryptocurrencies through Telegram channels.
How Scammers Exploit Telegram for Cryptocurrency Schemes
CertiK, a renowned blockchain security firm, is closely monitoring the activities of scammers organizing honeytrap schemes through at least three Telegram channels:
·       AltLex
·       DON CRYPTON
·       SZ Trades – 加密貨幣

These actors use paid actors to provide seemingly legitimate investment tips before cleverly guiding their victims to invest in bogus tokens. This malicious activity has already cost victims around $3.2 million.
Channels like AltLex and DON CRYPTON use sophisticated strategies to promote fraudulent cryptocurrencies. AltLex became known for promoting fictitious tokens such as Linea, Paxos, and Circle using a fake trading identity named Alexander. DON CRYPTON, connected to AltLex via a telegra[.]ph post, hires actors from casting websites to support their activities.
Methods and Consequences of the Scams
These channels initially publish real content to build trust among their followers, which they then exploit to promote new, fake tokens, often feigning their legitimacy and profit potential. These manipulative tactics lead to financial losses and undermine the foundational principle of trust that the cryptocurrency ecosystem relies on.
Fraudulent tokens are often paired with Wrapped Ethereum (WETH) and utilize unverified signature functions, allowing for price manipulation. Once the scammers drain the liquidity, they leave investors with worthless tokens they cannot sell.
Results of CertiK's Investigation
CertiK's investigation revealed wallets connected to these scams and provided insights into the operations and potential locations of the scammers. Although the identity and whereabouts remain hidden, evidence suggests connections to the United Kingdom, adding another layer of complexity to the operation.
CertiK reminds that in accordance with the rules of the British Financial Conduct Authority (FCA), crypto services must include warnings about investment risks, applicable only to individuals in the United Kingdom or those using a British VPN server.
The Importance of Caution When Investing in Cryptocurrencies
This revelation highlights the risks associated with investing in cryptocurrencies, especially for newcomers attracted by the promise of quick gains. It's important to perform thorough due diligence and be skeptical of offers that seem too good to be true.
#Web3 #CertiK #scam #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“