Crypto theft continues: Over $103 million stolen in April
Crypto theft and exploits took center stage in April, leaving investors reeling from the staggering $103.7 million in funds lost to cybercriminals, according to the latest report from CertiK.
The month was marked by a wave of security breaches and fraudulent activities, culminating in a total loss of $430 million so far this year.
As the crypto industry continues to grapple with increasing security risks, experts warn that vigilance and caution are more imperative than ever before.
Crypto theft, flash loan attacks continue to plague the industry in April
Despite efforts to improve security measures, the crypto industry faced a challenging month of April, with an increase in flash loan attacks, exit fraud and other forms of crypto theft. According to CertiKthe total amount lost for these security breaches reached $75 million, which is almost half of the $145 million lost in the first four months of 2021.
#CertiKSkynetAlert 🚨
Combining all the events in April, we have confirmed that ~$103.6 million has been lost due to exploits, hacks and fraud.
Closing fraud was ~$9.3 million.
Flash loans were ~$19.8 million.
See the details below 👇 pic.twitter.com/jflvMPiJGQ
— CertiK Alert (@CertiKAlert) 30 April 2023
One of the most significant incidents involved Yearn Finance, which suffered a $20 million loss due to a hacker exploiting an outdated smart contract on April 13. Meanwhile, the month also witnessed several high-profile exploits, such as the loss of $25.4 million due to the compromise of several MEV trading bots on April 3.
Crypto total market cap barely unchanged at $1.25 trillion on the daily chart at TradingView.com
In addition, the Bitrue exchange fell victim to a $22 million hot wallet exploit, while the South Korean GDAC exchange lost $13 million in a hack.
The latest victim to fall victim to a flash loan attack was the Ovix protocol, based on the Polygon blockchain, which suffered a loss of $2 million on April 28 due to the exploit.
Source: Shutterstock
The Implications of Crypto Exploitation: What Can Be Done to Prevent Them?
The latest wave of crypto exploits and hacks is a stark reminder of the risks that come with investing in digital assets. These security breaches not only result in significant financial losses for investors and companies, but also damage the reputation and credibility of the crypto industry as a whole.
According to Chinalysis, one of the most effective ways to prevent crypto exploitation and hacks is through regular security audits and risk assessments. By conducting these assessments, companies can identify and address potential vulnerabilities before they can be exploited.
Source: Chainalysis
Another approach is to promote greater transparency and accountability within the crypto industry. By sharing information and collaborating on security best practices, companies can improve their collective defenses against malicious attacks.
Furthermore, the involvement of regulatory bodies can ensure that companies adhere to strict security standards and prevent bad actors from taking advantage of regulatory loopholes.
While the risks of investing in cryptocurrencies cannot be completely eliminated, taking proactive measures to improve security can significantly reduce the likelihood of becoming a victim of crypto theft.
– Selected image from Entrackr
