DeFi
$198.3 Million Lost to Exploits, Scams and More
June 2024 was a tough month for the cryptocurrency industry, with many platforms and users suffering significant financial losses due to cyberattacks. Data from CertiK Alerts shows that various exploits, hacks, and scams resulted in losses of approximately $198.3 million. This could make June 2024 the second-highest month for losses in cryptocurrency history.
But what exactly went wrong and how can you protect yourself? Dive deeper to find out!
Exploits, Vulnerabilities, Losses
One of the main contributors to these losses was BtcTurk, a Turkish crypto exchange, who lost nearly $90 million in a hacker attack. Although some funds have been recovered, this incident highlights ongoing risks in the crypto ecosystem.
The exploits resulted in losses estimated at $171.3 million. Various flaws and vulnerabilities in decentralized finance (DeFi) applications and systems have made them prime targets for attackers, highlighting the serious threats facing the DeFi sector.
Flash Loan Attacks
Flash loan attacks alone cost an estimated $23.5 million in June. Flash loans allow users to borrow large amounts of money without collateral, as the loan must be repaid in a single transaction. Malicious actors have exploited this phenomenon to manipulate markets and drain liquidity reserves, causing significant financial damage.
No more scams
Exit scams, where project developers abruptly abandon their projects and run away with investors’ funds, have resulted in losses of around $4.8 million. These frauds have further eroded trust in the cryptocurrency community.
Successful recoveries
Despite high overall losses, there have been some successful recoveries. Approximately $1.3 million in stolen funds have been recovered through the efforts of security teams and blockchain analytics firms. These recoveries highlight the importance of immediate response strategies and the need for robust preventative measures.
June 2024 reminded us of the vulnerabilities and risks of the cryptocurrency sector. While significant losses have been recorded, efforts to recover stolen funds and improve security measures provide hope for the future. The industry must continue to strengthen its defenses against cyberattacks.
Read also: This Week in Crypto: Social Media Hacks Generate $573 Million in Q2 Losses
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