Crypto Loses $32 Mln In Scams & Exploits Amid Market Recovery

The crypto market has been witnessing a bullish momentum in October, reflecting the “Uptober” sentiment in the segment. However, despite the gains, the security breaches and crypto scams have continued to weigh on the investors’ sentiment.

Meanwhile, October 2023 has been a tumultuous month for the cryptocurrency world, with a string of incidents leading to substantial financial losses. The monthly report from CertiK Alert reveals that crypto enthusiasts lost a combined total of over $32 million due to exploits, hacks, and scams. These events continue to raise concerns about the security and integrity of digital assets.

A Detailed Look Into The October Crypto Incidents

As detailed in the CertiK Alert report, the losses were categorized into different types of incidents. Exit scams, which involve fraudulent projects suddenly disappearing with investors’ funds, accounted for around $8 million of the total losses.

On the other hand, flash loans, a financial instrument that has gained popularity in the decentralized finance (DeFi) space, resulted in losses of approximately $1.7 million. In addition, exploits, which are vulnerabilities or weaknesses in a blockchain network that are manipulated for financial gain, made up the largest portion of the losses, reaching around $22 million.

Here, we take a closer look at the report.

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Crypto Scams in October 2023

Some of the major incidents in October include Fantom Foundation grappling with a substantial setback of $7 million, while Coins.ph reported notable losses totaling $6 million. In addition, Burgel.eth and Stars Arena incurred a financial loss amounting to $3 million and $2.9 million, respectively.

Flash Loan Attacks in October 2023

Flash loan attacks were responsible for significant losses, with the top three incidents being Platypus DeFi suffering a loss of $2.22 million. Simultaneously, BH Token and Hope.Money experienced losses of around $1.27 million and $0.42 million, respectively.

Exit Scams in October 2023

Exit scams, a perennial issue in the crypto space, contributed to substantial losses in the crypto segment in October. The top incidents include Standard Cross Finance losing around $1.6 million, and Ivy experiencing a setback of $1.58 million. In addition, Safereum incurred a loss of $1.3 million.

Year-To-Date Losses In 2023

With a series of losses in October, the year-to-date (YTD) figure for crypto scams, hacks, and exploits in 2023 has reached a staggering $1.35 billion. This significant sum underscores the persistent challenges and vulnerabilities in the cryptocurrency industry.

Meanwhile, the events of October serve as a reminder of the importance of due diligence and security measures in the world of digital assets. Given the increasing threats in the cryptocurrency industry, investors as well as project developers must remain vigilant to protect their investments and ensure the integrity of the crypto ecosystem.

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