BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

The Crypto Market has Lost Almost $1B to Exploits, Hacks, and Scams in 2023: Report

BlockNews Team by BlockNews Team
September 4, 2023
in Crypto, Finance, Investing
the crypto market
Share on TwitterShare on Reddit
  • Certik report shows that the crypto industry has lost 4997 million to crypto attacks and scams.
  • In August alone, the industry lost more than $45 million, most of which was to exit scams.
  • FBI warn the public of spyware, false job advertisements, and social media impersonation as new crypto fraud strategies.

A report shared by blockchain security firm CertiK shows that users in the crypto industry have lost $997 million to malicious actors year-to-date (YTD). In the month of August alone, the report shows that users lost about $45.8 million due to crypto-related attacks, exploits, hacks, and scams. 

#CertiKStatsAlert 🚨

Combining all the incidents in August we’ve confirmed ~$45.8M lost to exploits, hacks and scams.

Exit scams were ~$26M

Flash loans were ~$6.4M

Exploits were ~$13.5M

See more details below 👇 pic.twitter.com/L2gsJYBJ3b

— CertiK Alert (@CertiKAlert) August 31, 2023
Via @CertiKAlert – X

According to the report, $26 million of the $45 million were lost to exit scams in the crypto space. An additional $6.4 million were lost through flash loans which are a relatively new form of uncollateralized lending in the DeFi space. 

Exploits, which include vulnerabilities in smart contracts and other blockchain technologies, made up the remaining $13.5 million.

CertiK noted that in August, the crypto community suffered 36 cybercriminal incidents, some of which led to significant losses. Of these, CertiK highlighted the Zunami Protocol attack, which cost $2.2 million in losses, and the Exactly Protocol exploit, which cost $7.3 million. More significant was the PEPE withdrawal incident, which led to $13.2 million in losses. 

Even while the losses in August were substantial, they were far less than the losses sustained in July. De.Fi, a Web3 data outlet, reported losses totaling about $486 million in July 2023, with the Multichain attack accounting for about $231 million of those losses.

This in addition to other factors led to Multichain winding down operations on July 14. According to the team, the crypto company lacked funding to continue operations. They also cited a lack of alternative sources of information as one of the reasons for its shutdown. The team was reportedly unable to contact the CEO after he was taken into custody by Chinese authorities.

Of the $997 million lost this year, CertiK stated that more than $596 million was lost to exploits. An additional $137 million was lost to exit scams, while more than $261 million has been lost to flash loan attacks this year. Flash loans have become a more common occurrence in 2023 with March recording the highest number of these attacks leading to about $200 million in losses.

Rising Crypto Fraud Threatens the $2 Trillion Market

This report comes at a time when, according to data from CoinMarketCap, the market capitalization of all cryptocurrencies has surpassed $1.2 trillion. The rising losses show that the market’s expansion also increases the appeal of illegal activity. 

To reduce their occurrence, regulatory agencies including the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) have stepped up their attempts to crack down on crimes associated with cryptocurrencies. However, the statistics imply that additional steps must be taken to protect this developing financial ecosystem.

Hacks and Web3 exploits are not the only types of crypto fraud currently plaguing the industry. According to recent reports from the Federal Bureau of Investigation (FBI), con artists now use a variety of strategies to influence their victims. Their well-known tactics include spyware, false job advertisements, and social media impersonation.

Some of these bogus jobs, according to the FBI’s observation, convince victims to engage in cryptocurrency fraud. Additionally, the victims of these schemes frequently endure cruel treatment. The FBI cautioned job applicants to avoid applying for positions with extremely generous salaries or benefits. 

Tags: Crypto MarketExplain thisExploitsHacksScams
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

bitcoin(s)
Crypto

US Lawmakers Call On SEC Chair To Approve Spot Bitcoin ETFs ‘Immediately’

September 30, 2023
Ripple Logo on Phone
Business

Ripple Retracts Fortress Trust Acquisition, Keeps Future Collaborations Open

September 30, 2023
Eth logo
Crypto

Ethereum Futures ETFs Could Start Trading Next Week — Bloomberg Analyst

September 30, 2023
Paysafe logo on Billboard
Business

Binance Loses Key European Banking Partner Paysafe, Urges Shift to USDT

September 30, 2023
Around the Block
Crypto

Around The Block: Sept 29 Week in News

September 30, 2023
Bitcoin-Coin
Business

Bitcoin Insurance Company AnchorWatch Secures $3 Million to Bring Multisig Mainstream

September 29, 2023
Load More
Next Post
Ivan Bianco

Streamer Loses $60K in Crypto After Accidentally Showing Seed Phrase

OKX

OKX Crypto Exchange Plans to Set Up Business In India, hire local staff for Web3 exploration

Nexo-logo

Nexo Debuts Dual-Function Crypto Mastercard for European Citizens 

Related News

Flash Loans and Price Oracles

Flash Loans and Price Oracles

July 12, 2022
Whatever Happened to Age of Rust? A 2022 Review

Whatever Happened to Age of Rust? A 2022 Review

June 9, 2022
Ripple-With-Gavel

Ripple Wins Case Against SEC

September 28, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter Instagram TikTok
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • US Lawmakers Call On SEC Chair To Approve Spot Bitcoin ETFs ‘Immediately’ September 30, 2023
  • Uniswap Seeks Funding Approval to Bolster Development and Research Initiatives September 30, 2023
  • Ripple Retracts Fortress Trust Acquisition, Keeps Future Collaborations Open September 30, 2023

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?