According to PeckShield, a blockchain analytics company, October was characterized by continued difficulties in the cryptocurrency industry. Hacker attacks and phishing schemes resulted in $181,000,000 in losses.
These incidents, although a slight drop from $120 millions in September’s figures, highlight the ongoing issues with digital assets.
#PeckShieldAlert October 2024 saw 20 crypto hacks, with losses totaling $88.47million. #Top 5 hacks of October 2024 : #RadiantCapital $53M(bridged to#Ethereum); U.S. government seizure fund: $20M returned; eigenlayer $5.7M ($5,7M laundered into…
Around two dozen incidents, such as large-scale frauds and breaches of security, were recorded.
Radiant capital breach
Radiant Capital suffered losses of $53,000,000 from the multi-signature Ethereum wallets.
In this case, hackers exploited vulnerabilities in multi-signature wallets that require several private keys for transactions.
The breach is a significant blow to the DeFi project and raises questions regarding security across all DeFi platforms.
The US government has recovered $20 million in illicit funds.
This seizure is a sign of increasing cooperation between the law enforcement and blockchain analysis firms. It could increase chances to recover stolen assets in other cases.
The October loss is attributed to rug pulls and phishing schemes
OKLink data shows that phishing scams are still a serious threat. They have caused $43.5 million worth of losses.
A phishing scam involving “permit signatures” (a fraudulent method to circumvent user consent) resulted in the loss of $35 million worth of fwDETH, a token that is used on decentralized trading platforms.
OKX Explorer Security Monthly report In October, the onchain losses totaled 181 million dollars, an increase of 38.9% compared to last month. Losses of $43.53 millions were caused by phishing scams. A Blast user who lost $35,000,000 in fwDETH on Oct 11 due to a “permit signature” phishing scam. Radiant announced…
The need to educate and inform users about the crypto-ecosystem is still very much needed.
Leakage of private keys, which was responsible for $7.2 million in losses during October, is another significant factor.
The incidents highlight a vulnerability that exists in the crypto-world, since hackers can gain unrestricted entry to wallets by stealing private keys.
To mitigate these risks, it is becoming increasingly crucial to implement enhanced security measures such as hardware wallets or secure key management.
In October, scams involving “rug pulls”, whereby developers abandon their projects and steal investors’ money, totaled $45.7 million.
These incidents usually involve tokens that are new or DeFi initiatives without regulatory oversight.
Investors should be more transparent and do their due diligence before investing in new crypto ventures.
Although the losses of $181,000,000 in October are substantial, they represent a decrease of 26% from $120,000,000 in September when there were over 20 incidents in the crypto industry.
Data suggests that there has been a partial recovery, as there are fewer cases of high profile compared with August when total losses were over $300 million in fewer incidents.
Experts warn that the decline in security does not mean an improvement across-the-board, since vulnerabilities still exist within DeFi protocols and exchange security as well as user awareness.
PeckShield could be updated as new updates are released.
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