The cryptocurrency industry is permanently vulnerable to malicious activity, and hackers are constantly attacking it. We’re only two months into 2024, and cryptocurrency scams are already popping up. According to blockchain audit firm CertiK, more than $160 million has been lost due to cryptocurrency hacks and fraud. February only.
Although this figure is lower than before, january lossCryptocurrency losses due to hacking, fraud, and abuse are growing rapidly, currently reaching $343.5 million annually.
The cryptocurrency sector lost $160 million to malicious players.
According to Certik’s latest update, the cryptocurrency world has already been hit hard by a series of sophisticated scams in 2024. The majority of February’s losses, about $101 million, were caused by exploiting vulnerabilities in cryptocurrency projects. Various examples of attacks were noted throughout the month, especially on Certik’s social media pages against X.
Combining all incidents in February, approximately $160 million was lost due to exploits, hacks, and fraud.
The total decreased slightly compared to January, with the phishing amount reaching approximately $14.6 million.
Scam Closed: ~$58.2m
Flash Loan: ~$138,000
Exploits: ~$101M
Returned: ~$6.4 million… pic.twitter.com/E15cqbeELQ— CertiK Alert (@CertiKAlert) February 29, 2024
For example, on February 28 Certik pointed out Seneca USD, an omnichain CDP protocol, was exploited and perpetrators stole at least $3 million worth of assets. In total, Seneca USD lost $6.46 million in February.
However, the biggest attack occurred on PlayDapp, a South Korean blockchain game development platform. Attackers exploited a smart contract vulnerability in the platform to steal $32.35 million worth of cryptocurrency. Other large-scale exploits occurred on Fix Float, Jihoz.Run, and DuelBits, resulting in losses of $26 million, $9.7 million, and $4.66 million respectively.
Certik noted that investors suffered $58.2 million in losses trying to escape the scam in February. This is when the developer of a cryptocurrency project raises a large amount of funding and then suddenly disappears, taking investors’ funds with them.
Total crypto market cap is currently at $2.262 trillion. Chart: TradingView.com
BitForex, a Hong Kong-based cryptocurrency exchange, accounted for the majority of February’s breaches. The exchange was suddenly taken offline after $56.5 million was mysteriously withdrawn from hot wallets. RiskOnBlast, a gambling and exchange platform, also disappeared with $1.29 million worth of investment funds.
The industry also lost $138,000 on flash loans, a significant decrease from the $15.3 million recorded in January. $6.4 million was returned, the largest amount from Seneca exploiters. who is back 1,537 ETH worth $5.3 million was used in this project.
Can the cryptocurrency industry really be free from fraud?
Cryptocurrencies provide users with complete anonymity, but hacking and theft are some of the disadvantages that arise from the broader benefits of this anonymity. Despite taking various security measures, Attackers have upped their game. and expanded the business Over the years.
However, recent reports suggest that fraud and abuse are occurring. has decreased significantly Last year. especially, The report has been released Losses from cryptocurrency fraud decreased from $39.6 billion in 2022 to $24.2 billion in 2023.
Featured image from Pexels, chart from TradingView