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April Marks A Record Low In Crypto Hacks And Scams: A Sign Of Strengthening Security?

Bitcoinist

Bitcoin News / Bitcoinist 90 Views

In April, the crypto community witnessed a historic downturn in financial losses due to fewer hacks and scams. According to blockchain security firm CertiK, the total damages of these types of crypto attacks dipped to a record low in April.

Breakdown Of April’s Crypto Losses

CertiK’s latest data reveals a substantial decline in the total value lost to “crypto-related criminal activities.” In a recent post on X, the firm reported approximately $25.7 million in combined losses through the month—marking this as the lowest monthly total losses from hacks and scams observed since 2021.

This figure signifies a 141% decrease from March’s total losses, emphasizing a notable downtrend in the frequency and severity of these incidents. CertiK’s detailed breakdown sheds light on the specific areas of vulnerability within the crypto landscape.

Approximately $4.3 million was attributed to exit scams, where project developers abscond with investor funds. Flash loan attacks, although less significant, accounted for about $129,000 in losses.

However, the majority of the financial damage, totaling $21 million, stemmed from various exploits. This data highlights the types of risks prevalent in the market and underscores the ongoing need for enhanced security measures and investor vigilance in these crypto areas.

February’s Major Exploits

Meanwhile, historically comparing, CertiK pointed out that February witnessed a spike in losses, with over $160 million reported—primarily driven by major exploits like the one on the South Korean blockchain game platform PlayDapp, which alone suffered a $32.35 million blow due to a smart contract vulnerability.

Additional significant losses were recorded on platforms such as Fixed Float, Jihoz.Run and DuelBits, with damages amounting to $26 million, $9.7 million, and $4.66 million, respectively.

Furthermore, Certik highlighted that investors faced substantial losses of $58.2 million due to exit scams in February, instances where crypto project developers abscond with substantial investor funds.

The global crypto market cap value on TradingView

PeckShield, a firm specializing in blockchain security, corroborated the disturbing trend, noting a 97.6% month-over-month increase in the total value of crypto stolen in February.

Particularly, in a detailed post on X, PeckShield reported that February witnessed an alarming $360.83 million stolen in various crypto heists, marking a significant escalation from January’s theft of $182.54 million, which itself represented a 96.7% surge in stolen funds compared to the previous month.

Featured image from Unsplash, Chart from TradingView


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