An important turning point in the fight against cryptocurrency-related hacks, frauds, and vulnerabilities was reached in April 2024. Only $25.7 million was lost overall throughout the month, according to research by blockchain security company CertiK, indicating a record low in the financial harm caused by these illicit operations. This sharp drop is a substantial 141% decrease from March’s startling $62 million in losses.
#CertiKStatsAlert Combining all the incidents in April we’ve confirmed ~$25.7m lost to exploits, hacks and scams. The lowest figure we’ve recorded, dating back to 2021.A 141% decrease from MarchExit scams: ~$4.3mFlash loans: ~$129kExploits: ~$21mMore details below pic.twitter.com/zfSh8mabzJ
— CertiK Alert (@CertiKAlert) April 30, 2024
Key Factors for the April’s Losses
A major contributing element to the notable decrease in damages was the drop in private key breaches, a popular method used by hackers to obtain illegal use of cryptocurrency holdings. There were eleven such assaults in March, which led to significant monetary losses. Yet, by April, there had only been three instances of compromised private keys, which resulted in a discernible decline in the total amount of damages.
Even with the encouraging tendency, there remained a few notable frauds and scams in April that resulted in losses of hundreds of thousands to millions of dollars. One of the biggest events involved a cyberattack on FixedFloat, which cost the company approximately three million dollars. This was its second significant attack of the year; the first had happened in February.
Looks like @FixedFloat just got exploited for 1700 ETH!Drainer address: 0x85c4fF99bF0eCb24e02921b0D4b5d336523Fa085Info by: @reprove pic.twitter.com/XHnHy3CFSs
— Officer's Notes (@officer_cia) February 18, 2024
In addition, Memecoin Condom, a project on the Solana network, suffered an exploit that drained approximately $933,000 from unsuspecting users. The event underscored the need for caution when interacting with new projects and pre-sales in the crypto space.
Flash Loan Assaults and Exit Scams
A staggering $21 million of the $25.7 million in damages recorded in April originated from different types of scams. Just three instances, each resulting in more than $1 million in financial losses, fall under this wide category that includes a variety of hacking techniques. $129,000 of the overall losses were attributable to flash loan assaults, a well-known tactic used by hackers to influence the crypto industry. The highest single occurrence led to losses of $55,000. Notably, this was the smallest amount of flash loan assaults that had been seen since February 2022, suggesting a downward trend in attack regularity and effect.
Exit scams, where project developers disappear with investor funds, accounted for approximately $4.3 million in losses. Despite a 40% decrease in exit scams compared to March, this type of fraud remains a concern for the crypto community.
Notable Projects Under Scrutiny
CertiK’s report also mentioned ZKasino, a project that prevented investors from withdrawing funds they had deposited. While the report didn’t classify it as a scam, it noted that ZKasino was in the middle of a “controversy.” If further investigation reveals malicious intent, CertiK indicated that it would update its figures accordingly.
Yield Protocol, a decentralised finance (DeFi) app, was also exploited in April, leading to a loss of $181,000. Although the app had been officially closed down, the immutable nature of smart contracts allowed some users to continue interacting with it, ultimately leading to the exploit.
#CertiKInsight We have seen an exploit on @yield strategy contracts on Arbitrum for ~$181K.The attacker exploited a discrepancy between the pool token balance and total supply with flash-loaned assets and then withdrew extra pool tokens.Stay Vigilant! pic.twitter.com/9cLDWt0e3f
— CertiK Alert (@CertiKAlert) April 30, 2024
The Road Ahead
While April’s reduction in crypto losses is encouraging, it doesn’t signify the end of risks in the crypto landscape. As hackers and scammers continue to adapt and evolve their tactics, it’s crucial for the crypto community to remain vigilant and invest in robust security measures. Continued advancements in blockchain security technologies and stronger regulatory frameworks can further help mitigate the risks and protect investors from future exploits and scams.
Investors are advised to conduct thorough due diligence before engaging with new crypto projects or participating in pre-sales. Following best practices for securing private keys and staying updated on the latest security threats can significantly reduce the likelihood of falling victim to crypto-related attacks. Ultimately, the ongoing effort to enhance security and promote investor awareness will play a pivotal role in ensuring the long-term health and stability of the crypto industry.
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