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- 1 November 2023 was the most damaging period for crypto-related theft, scams, and exploits, with nefarious actors making a staggering $363 Million.
- 2 The record-breaking monthly figure surpassed the previous high of $329 Million in September.
In a tumultuous month for the cryptocurrency industry, November 2023 has emerged as the most damaging period for crypto-related theft, scams, and exploits, with nefarious actors making a staggering $363 Million, according to insights from blockchain security firm CertiK.
Breaking down the figures, exploits took center stage, contributing a substantial $316.4 Million to the overall losses. Flash loans added $45.5 Million in damages, while exit scams resulted in a further $1.1 Million being siphoned away, as outlined in an X (formerly Twitter) post by CertiK on November 30.
Major exploits in November targeted prominent platforms, with Poloniex and HTX/Heco Bridge facing losses of $131.4 Million and $113.3 Million, respectively. A notable third-largest exploit saw a single victim succumb to a phishing attack, resulting in a loss of about $27 Million.
Within realms of flash loan attacks, the $45 Million KyberSwap attack stood out, constituting nearly all the damage for this category in the month. This record-breaking monthly figure surpassed the previous high of $329 Million in September, primarily fueled by the $200 Million Mixin Network attack.
As of the end of November, cumulative losses for 2023 reached $1.7 Billion due to exploits, exit scams, and flash loan attacks. While significant, this figure represents 54% of the losses incurred in the entirety of 2022 when incidents led to losses totaling $3.7 Billion. In comparison, 2021 saw losses amounting to $1.7 Billion, according to CertiK.
Exploit Targets Justin Sun’s HTX (formerly Huobi)
In a separate and impactful incident, the HECO bridge linked to Justin Sun’s HTX (formerly Huobi) fell victim to a substantial hack, resulting in a staggering loss exceeding $83 Million across various crypto assets.
HTX founder Justin Sun confirmed the hack through a post on X, reassuring users that the exchange would cover any losses incurred in the compromised hot wallet. However, the official HTX account on X is yet to release an official statement on the incident.
The HTX team opted to communicate updates through their official Telegram account, where they announced a temporary suspension of deposits and withdrawals. While Sun emphasized that the recent events would not impact customers’ funds on HTX, he conveyed that the HTX team is actively investigating the exploit.
A comprehensive breakdown of the hack, shared by on-chain surveillance resource Lookonchain, detailed the perpetrators’ success in making away with $83.4 Million across eight distinct crypto assets.
The orchestrated exploit involved various transactions, including a $20.4 Million withdrawal in ETH, a $42.1 Million withdrawal in USDT, and an extraordinary outflow of 346.8 Billion Shiba Inu tokens, among other assets. Normal services, including deposits and withdrawals, are expected to resume once the thorough investigation concludes, providing users with added assurance.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
