DeFi
$198.3 million lost to exploitation, 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 happened and how can you protect yourself? Dive deeper to find out!
Exploits, Vulnerabilities, Losses
One of the biggest contributors to these losses was BtcTurk, a Turkish cryptocurrency exchange, which lost nearly $90 million following a hacker attack. Although some funds have been recovered, this incident highlights ongoing risks in the cryptocurrency ecosystem.
The exploits resulted in an estimated $171.3 million in losses. Various breaches and vulnerabilities in decentralized finance (DeFi) applications and systems have made them prime targets for attackers, demonstrating the serious threats facing the DeFi sector.
Flash Loan Attacks
Flash loan attacks alone cost approximately $23.5 million in June. Flash loans allow users to borrow large sums of money without collateral because the loan must be repaid in a single transaction. Malicious actors have exploited this situation 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. Although significant losses have been incurred, efforts to recover stolen funds and improve security measures provide hope for the future. The sector must continue to strengthen its defenses against cyberattacks.
Read also: This Week in Crypto: Social Media Hacks Cause $573 Million in Q2 Losses
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