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 Yearn Finance was the primary victim of these attacks, with a hacker exploiting an outdated smart contract on April 13.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
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