September Sees $332 Million in Losses Due to Crypto Exploits, Hacks, and Scams
A recent report from CertiK has revealed that the month of September has been particularly alarming for the crypto industry, with approximately $332 million lost to various exploits, hacks, and scams. This data highlights the growing vulnerability of the crypto space to malicious activities.
Among the incidents reported in September, exit scams accounted for losses of around $1.9 million, while flash loans resulted in approximately $400,000 in losses. However, the most significant contributor to the overall loss was exploits, which amounted to a staggering $329.8 million.
Notable Incidents in September
One notable event was the Mixin Network attack on September 23. The decentralized cross-chain transfer protocol suffered a breach that led to a loss of $200 million due to a breach of its cloud service provider.
CoinEx, a cryptocurrency exchange, also experienced a major incident on September 12. The suspected attack resulted in losses exceeding $53.1 million across its hot wallets.
In another incident on September 4, stake.com lost $41 million when different cryptocurrencies were received by an account before being distributed to multiple addresses.
September Contributes to Yearly Losses of Over $1.34 Billion
The crypto space experienced several other significant incidents during September. A phishing incident resulted in a loss of $24.2 million, and HTX Global suffered a loss of $7.9 million. Even entrepreneur Mark Cuban reported a personal loss of $900,000.
When considering the entire year, losses in digital assets amounted to $997 million by the end of August. July was the second-highest month for exploit losses, with $285.8 million stolen. Overall, the total losses from exploits, scams, and hacks in 2023 reached a staggering $1.34 billion.
Furthermore, a report from BeosinAlert highlights that Q3 2023 saw losses of $889.26 million from hacks, phishing scams, and rug pulls in the Web3 sector. This quarterly figure surpasses the combined losses from Q1 ($330 million) and Q2 ($333 million).
Lazarus Group Blamed for Multiple High-Value Crypto Attacks
The Lazarus Group, a North Korean hacking collective, has been identified as responsible for many crypto-related attacks in 2023. These include the stake.com attack and the CoinEx exchange hack. Other attacks attributed to the group involve thefts from Sky Mavis’ Ronin Bridge and Harmony’s Horizon Bridge.
According to the US government, cybercrime and crypto theft provide approximately half of North Korea’s funding for its missile program. The international community is working to understand how North Korea became so proficient in these activities.
Data from Dune Analytics reveals that the Lazarus Group currently holds around $45.6 million in crypto assets. Wallets linked to the group contain approximately 1,600 Bitcoin, 10,810 Ether (ETH), and 64,490 Binance Coin (BNB), totaling $47 million in cryptocurrency.
Notably, the group’s crypto holdings have decreased from $86 million shortly after the Stake.com hack.
Hot Take: Rising Crypto Exploits Highlight the Urgency for Improved Security Measures
The significant losses incurred in September due to crypto exploits, hacks, and scams serve as a wake-up call for the industry. It is clear that more robust security measures are urgently needed to protect investors and prevent malicious activities. The involvement of sophisticated hacking groups like Lazarus Group further emphasizes the need for enhanced cybersecurity efforts.
As the crypto space continues to grow, it is crucial for individuals and organizations to prioritize security practices, including multi-factor authentication, secure storage solutions, and regular audits of smart contracts and protocols. By implementing these measures, the industry can mitigate risks and foster a safer environment for participants.
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