DeFi
$198.3 Million Lost to Exploits, Scams and More
June 2024 was a difficult 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 heaviest month in terms of losses in the history of cryptocurrencies.
But what exactly happened 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 cryptocurrency exchange, which lost nearly $90 million in a hacker attack. While some funds were recovered, the incident highlights the ongoing risks in the cryptocurrency 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 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.
Exit scams
Exit scams, where project developers abruptly abandon their projects and abscond with investors’ funds, have resulted in losses of approximately $4.8 million. These frauds have further eroded trust in the cryptocurrency community.
Successful recoveries
Despite high overall losses, a few recoveries were successful. Around $1.3 million in stolen funds were recovered thanks to the efforts of security teams and blockchain analytics companies. These recoveries highlight the importance of immediate response strategies and the need for robust prevention 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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