Key Takeaways:
- April Reductions: April 2024 witnessed the lowest financial losses from cryptocurrency scams and hacks since 2021, totaling only $25.7 million, highlighting improved security measures and fewer private key hacks.
- Notable Incidents: Despite the downturn, significant breaches occurred, including the FixedFloat hack with losses of $3 million and the Memecoin Condom scam on the Solana network costing users $933,000.
- Ongoing Concerns: CertiK’s ongoing monitoring of potential scams, including ZKasino, and recent breaches like the Yield Protocol exploit, underscore persistent risks in the crypto space despite overall improvements.
In April, the cryptocurrency community saw its lowest losses from hacks and scams since 2021, totaling only $25.7 million, as reported by CertiK, a leader in blockchain security.
This represents the lowest level of financial damage tracked by CertiK since it began its records.
#CertiKStatsAlert 🚨
— CertiK Alert (@CertiKAlert) April 30, 2024
Combining all the incidents in April we’ve confirmed ~$25.7m lost to exploits, hacks and scams.
The lowest figure we’ve recorded, dating back to 2021.
A 141% decrease from March
Exit scams: ~$4.3m
Flash loans: ~$129k
Exploits: ~$21m
More details below pic.twitter.com/zfSh8mabzJ
The substantial decline in losses, which dropped by 141% compared to the previous month, is largely credited to a reduction in private key hacks.
While March experienced 11 such attacks, April reported only three, indicating a significant improvement in security measures.
Despite the overall downturn, there were still notable incidents of scams and hacks.
For example, the Memecoin Condom advertised a presale on the Solana network, which unfortunately turned out to be a scam, leading to a loss of approximately $933,000.
BREAKING: Solana memecoin $CONDOM (@condomsol) raised 4,965 $SOL worth $906K in the presale and rugged before launch. pic.twitter.com/rzOAZKopDh
— Whale Insider (@WhaleInsider) April 3, 2024
Additionally, the Bitcoin Lightning Network exchange FixedFloat fell victim to a major hack on April 1, with losses amounting to about $3 million.
This incident marked the second time FixedFloat was compromised in 2024, following a similar event in February.
Of the $25.7 million in total reported losses for the month, $21 million were directly related to exploits, with three particular breaches each resulting in over $1 million in losses.
Flash loan attacks, while less frequent, still accounted for $129,000 in losses, the lowest since February 2022.
The month also saw a 40% reduction in the number of exit scams, with 13 reported incidents.
CertiK also noted ongoing concerns with ZKasino, a project that has prevented investors from withdrawing their deposits.
While it has not been officially classified as a scam, CertiK is monitoring the situation closely and will update their reports if nefarious activities are confirmed.
UPDATE: ZKASINO DECENTRALIZED GAMBLING PROTOCOL SPARKS CONTROVERSY AFTER $33 MILLION PROMISED TO INVESTORS IS SENT TO LIDO
— BSCN Headlines (@BSCNheadlines) April 22, 2024
ZKasino recently caused further uproar by moving funds to the Lido protocol on April 22.
Moreover, after the issuance of CertiK’s report, the decentralized finance app Yield Protocol was exploited for $181,000.
⚠️ Hackers have successfully exploited the smart contracts of the now-defunct DeFi lending protocol Yield Protocol, draining crypto assets amounting to approximately $181,000.#YieldProtocol #Exploithttps://t.co/9VepY77KNs
— Cryptonews.com (@cryptonews) April 30, 2024
Despite the app being officially decommissioned, its immutable smart contracts still allowed for user interaction, leading to the exploit.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
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