As a researcher with extensive experience in the blockchain and cryptocurrency sector, I find the recent report from CertiK on the losses and recoveries in the crypto industry both concerning and intriguing. The fact that the sector lost around $42.6 million to exploits, flash loans, and exit scams in May is undoubtedly a setback. However, it’s encouraging to note that approximately $96.2 million was recovered, offering some relief from the economic impact.
Based on the report from Certik, a leading blockchain security company, approximately $42.6 million was stolen from the cryptocurrency market in May through various means including exploits, flash loans, and exit scams.
In spite of the challenges encountered, around $96.2 million was recouped, providing some degree of financial alleviation.
Flash Loan Attacks Dominate Blockchain Losses
The largest crypto sector losses, approximately $20.7 million, were incurred due to flash loan attacks. Among the affected parties, Sonne Finance sustained the most significant damage, losing around $20 million. TLN Protocol experienced a loss of about $746,000, while GPU and Saturn Token faced smaller losses of $32,394 and $8,343 respectively.
#CertiKStatsAlert
As an analyst, I have calculated the total losses from confirmed incidents in May related to exploits, hacks, and scams. The amount comes out to be approximately $42.6 million. However, it is important to note that $96.2 million was successfully returned or recovered during these same events. Consequently, the net loss for May stands at around $53.6 million ($96.2m – $42.6m).
The losses are ~$1m above April’s low of ~$41.6m.
Exit scams: ~$1.8m
Flash loans: ~$20.7m
Exploits: ~$19.7mMore details below
— CertiK Alert (@CertiKAlert) May 31, 2024
The sector experienced substantial financial setbacks due to exploits, resulting in approximately $19.7 million in total losses. Among the affected companies, Gala Games sustained the greatest loss at $21.6 million, while AlexLab suffered a loss of $4.3 million, Pump Fun reported $1.9 million in losses, and GNUS.ai experienced a loss of $1.28 million. Orion recorded the smallest loss at $947,000.
As an analyst, I’ve reviewed the data and discovered that although not a frequent occurrence, exit scams resulted in approximately $1.8 million in collective losses. Specifically, Trees On Sol suffered a significant hit with $1.11 million in losses, followed by Pii Park with $490,000, Novamind with $123,019, and Arbalest with $91,520.
It’s intriguing to note that flash loan attacks have resulted in substantial financial losses during odd-numbered months. Specifically, the months of January, March, and May saw setbacks totalling $15.3 million, $21.9 million, and $20.7 million respectively. In comparison, the losses sustained in February and April were minimal, amounting to less than $150,000 each.
As an analyst, I’ve observed that February saw the largest amount of losses due to exit scams, with a staggering sum of $58.3 million being stolen during that month alone. Less than 10% of this amount was reported in other months.
Crypto Hacks and Rug Pulls Persist
As of the first half of 2024, Immunefi’s security reports indicate that a staggering $473 million in cryptocurrencies have been stolen through hacking attacks and rug pulls in a total of 108 recorded incidents.
In 2024, the decentralized finance (DeFi) sector continued to be the preferred victim for cyberattacks, with no reported incidents in the realm of centralized finance. In contrast to the preceding year, over $2 billion was stolen through hacks and exploits within DeFi, representing nearly half of the total amount lost in the previous period.
Back in May 2024, I found myself closely monitoring the crypto market as Ethereum and BNB Chain took center stage, accounting for a staggering 62% of the total losses among targeted chains.
As a researcher studying the field of cryptocurrencies, I can’t help but acknowledge the persistent issue of hacks and exploits in this domain. Just last week, a significant incident occurred when DMM Bitcoin, a Japanese cryptocurrency exchange, announced that they had suffered a hack leading to a loss of approximately 48 billion yen, equivalent to $305 million, in Bitcoin (BTC). In their official blog post, the exchange reported that an alarming amount of 4,502.9 BTC had “escaped” or “leaked” from their platform.
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2024-06-02 15:05