Over $32 Million Lost to Scams and Security Incidents in October, Says CertiK
According to blockchain analysis firm CertiK, the crypto market witnessed losses of over $32.2 million in October due to various security incidents and scams. Vulnerability exploits were the primary cause, resulting in $22 million in lost funds. The most significant breach occurred at the Fantom Foundation, where hackers stole $700,000 from an employee wallet and moved the funds into Tornado Cash.
Exit scams and rug pulls accounted for $8 million of the losses. The Standard Cross Finance scam was particularly noteworthy, as actors posing as developers and executives stole $1.6 million from investors. These scammers were also linked to the Fontoch scam earlier this year, which defrauded users of $31.6 million.
Flash loan scams contributed $1.7 million in lost funds. Malicious actors exploited flash loans to manipulate asset prices or exploit smart contract vulnerabilities. Platypus DeFi experienced the biggest flash loan scam this month, resulting in a loss of $2.2 million, although more than 80% of the funds were eventually returned.
Hot Take: Crypto Market Loses Millions to Scams and Security Breaches
In October, the crypto market faced significant challenges as scams and security incidents resulted in losses of over $32 million. Vulnerability exploits, exit scams, and flash loan manipulations were the leading causes behind these incidents. It is crucial for crypto users to exercise caution and remain vigilant when participating in the market to protect their investments. As hackers become more sophisticated in their techniques, it is essential for individuals and platforms alike to prioritize robust security measures. By staying informed about potential risks and adopting best practices for securing digital assets, you can minimize the chances of falling victim to scams and security breaches in the crypto space.
By
By
By
By
By