Crypto Losses from Hacks and Scams Hit Record Low in April: CertiK
In a recent report by blockchain security platform CertiK, the month of April witnessed the lowest amount of crypto losses due to hacks, exploits, and scams since 2021.
The total losses amounted to approximately $25.7 million. This marks a significant 141% decrease from the previous month.
Key takeaways from the report:
- Total losses in April 2023: ~$25.7 million.
- Exit scams accounted for ~$4.3 million.
- Flash loan attacks resulted in ~$129,000 in losses.
- Exploits caused ~$21 million in damage.
Read more: North Koreaās Lazarus Group Laundered $200M From 25+ Crypto Hacks: ZachXBT
Drop in crypto hacks primarily due to fewer private key compromises
A reduction in private key compromises is primarily responsible for the substantial decline in losses. While March saw 11 such attacks against protocols, April recorded only three instances.
Despite the overall positive trend, April still witnessed several notable hacks and scams that resulted in significant losses. One such incident involved the Condom meme coin, which deceived users by advertising a fake presale address on the Solana network. This led to a loss of around $933,000.
Another prominent attack targeted the Bitcoin Lightning Network exchange FixedFloat on April 1, resulting in a loss of approximately $3 million. Notably, this was the second time FixedFloat fell victim to a hack in 2023.
Also read: Australia Prepares For A Wave Of Spot-Bitcoin ETF Launches: Bloomberg
CertiK’s report further breaks down the $25.7 million in total losses. The report revealed that exploits accounted for the majority of the losses, accounting for $21 million, while only three breaches caused damages exceeding $1 million each.
Flash loan attacks were responsible for $129,000 in losses, with the largest single incident leading to $55,000 in damages. Interestingly, this marked the lowest occurrence of flash loan attacks since February 2022.
Moreover, the report identified 13 exit scams during April, indicating a 40% decrease compared to March.
It is important to note that CertiK’s figures did not include the controversial case of ZKasino, a project that prevented investors from withdrawing their deposited funds. While the report acknowledges the ongoing controversy surrounding ZKasino, it has not yet classified the project as a scam.
