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- 1 Scammers in the industry stole $59.8 million via exit scams, flash loan attacks, and DeFi protocol exploits.
- 2 The Tornado Cash (TORN) governance attack led to a crucial drop in its token price.
As per Certik’s report, Crypto scams certified accounted for $ 60 million for May 2023. Earlier in April, it was $ 103 million. The crypto scams have been variating in the crypto-sphere of our market. Crypto scams in May totaled to amount to $500 million year-to-date.
#CertiKSkynetAlert 🚨
— CertiK Alert (@CertiKAlert) May 31, 2023
Combining all the incidents in May we’ve confirmed ~$59.8M lost to exploits, hacks and scams.
Exit scams were ~$38.8M
Flash loans were ~$1.7M
Exploits were ~$19.3M
See more details below 👇 pic.twitter.com/vtfEBTqueB
According to blockchain security firm Certik, Crypto-related hacks, exploits, and scams of May, this year they occurred in nearly $60 million in losses. On May 31, it confirmed that fraudsters in the industry stole $59.8 million via exit scams, flash loan attacks, and DeFi protocol exploits.
This brought the total year-to-date malicious losses to $489.57 million, approximating $500 million.
In the recent four months, CertiK’s reports estimate $429.7 million were stolen by crypto scammers. Some users of the KuCoin exchange together lost over $22,000 after the Twitter account was hacked on April 24.
Scam Analysis – CertiK
Certik Alert analysis gave shocking outcomes. It revealed that $59.8 million was a Tinder theft scam from the cryptocurrency on leverages like different flaws, hacks, and scams.
The report emphasized the urgent necessity of increased security and safeguarding measures. It does highlight the present continuous problems in the digital asset ecosystem.
A total of $59.8 million was lost to cybercrime during the past month, from which around $38 million could only be traced back.
When fraudulent projects or platforms trick investors, related funds plainly vanish, leaving sufferers with heavy losses. And now it has become very often in common. It continues to shatter users’ faith in the cryptocurrency industry. They are ultimately resulting in dizzy development and progress.
Flash loans, also called no-collateral loans, are a quick and easy way to get money, one of the major causes of scams in April 2023.
With all the smart contracts that help commoners and users to be more creative and adapt towards betterment and innovations, they have become a point of gain for people who scam and violate security laws, ultimately manipulating markets. About $19.3 million was lost due to exploits, which involve taking advantage of flaws in blockchain protocols and smart contracts.
These instances highlight the importance of having better security procedures and a more robust DeFi infrastructure. More than now, measures are needed to stay safe from hacks and scams.
Noticed Crypto Attacks
Exit scam by a crypto investment platform Morgan DF Fintoch, in the same way, stole $31.6 million. They discovered they made several fake claims and used a paid actor as its CEO.
The Jimbos protocol’s $7.5 million flash loan took away 4,000 Ethereum (ETH) on May 28. As per the team’s report, it was working with law enforcement agencies, post its 10% bounty offer to return stolen funds was ignored.
Some more were The Tornado Cash (TORN) governance attack which led to a crucial drop in its token price, then the Deus DAO burn function exploits, resulting in a $6.5 million loss, and many more. They have always been at the stake of users’ faith and earnings, and to stop them, a more secure-fledged cover is needed.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
