Over $116 Million Lost in December to Cryptocurrency Scams
Blockchain security firm CertiK has reported that cryptocurrency scams resulted in a loss of over $116 million in December. The highest figures were recorded for exploits, exit scams, and flash loan attacks.
December Data Highlights
CertiK shared industry hack data on X (formerly Twitter), revealing several incidents that shaped the year. The data showed that December ranked fifth in terms of the highest monthly drain, with over $116 million lost. The biggest incident was the Orbit Chain hack, which resulted in a loss of $81 million. Another notable scam was a phishing attack that cost a user $4.4 million.
Flash Loan Attacks and Exploits
December saw five major flash loan attacks, including BearnDAO and GoodDollar, which lost $769,000 and $624,000 respectively. September, November, and July had the highest number of exploits throughout the year, bringing the total losses to $1.8 billion. Some notable incidents during these months included the Mixin Network incident and issues related to Poloniex, HTX, and HECO bridge.
Reduction in Hacks Over 12 Months
According to blockchain security firm Beosin, losses from hacks decreased from $4.38 billion in 2022 to $2 billion in 2023. This reduction can be attributed to increased community engagement and regulatory activities. The report also highlighted a drop in Web3 scams and hacks compared to 2022.
Diversified Scam Activity
Last year witnessed more diversified scam activity, incorporating traditional web2 models such as the man-in-the-middle attack and supply chain compromises. The movement of funds showed that most of the stolen funds remained in hacker addresses, and hackers utilized money laundering methods to disperse the funds and make investigations challenging.
Hot Take: December Ranks Fifth Highest Month in Crypto Scams With Over $100 Million Drained
In December, over $116 million was lost to cryptocurrency scams, making it the fifth highest month in terms of losses. The Orbit Chain hack and a phishing scam were the most significant incidents contributing to this figure. Despite this, there has been a decrease in Web3 scams and hacks compared to the previous year. The industry is witnessing more diverse scam activity and increased regulatory efforts to combat these threats. It is crucial for crypto users to remain vigilant and take necessary precautions to protect their assets.
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