Bad Actors Steal $38.9 Million from Web3 Projects in January 2024
A recent report from Quantstamp reveals that bad actors have managed to steal $38.9 million from various Web3 projects in the first month of 2024. These malicious actors utilized different attack methods, including smart contract hacks, key compromises, and scams.
Major Crypto Hacks of January 2024
Radiant Capital experienced a loss of $4.5 million due to an empty market exploit. Peckshield, a blockchain security company, identified that the root cause was not unique and originated from a short timeframe when new markets were activated on lending protocols. After conducting a thorough investigation, Radiant Capital resumed operations.
Gamma Strategies fell victim to a flash loan attack, resulting in a theft of $6.1 million from their public-facing vaults. Gamma temporarily suspended deposits and closed the vulnerability to prevent further damage.
Wise Lending encountered a flash loan attack that resulted in a loss of at least $460,000. The exploit involved manipulating the price oracle used by Wise Lending and marked the second attack on the protocol in six months.
Socket Loses Over $4 Million to Web3 Bad Actors
Socket suffered a security breach due to a vulnerability in user verification input, allowing hackers to steal nearly 2,000 ETH valued at over $4 million. However, Socket managed to recover 1,032 ETH and reimbursed all affected users.
Goledo Finance faced a similar security breach involving a flash loan attack that resulted in a theft of $1.7 million. The platform is currently negotiating with the perpetrator and has frozen the hacker’s accounts on centralized exchanges.
The incidents highlighted by Quantstamp’s report emphasize the ongoing security challenges faced by the Web3 ecosystem. It is crucial to remain vigilant in safeguarding user funds.
Hot Take: Decrease in Crypto Hacking Incidents
Despite the alarming $2 billion loss to bad actors in 2023, there has been a slight decline in hacking incidents targeting the cryptocurrency industry. According to De.FI, hackers managed to pilfer $2 billion in digital assets throughout the year, marking the first decrease in crypto hacking incidents since 2021.
This highlights the importance of continuous efforts to enhance security measures within the Web3 ecosystem and protect user funds.
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