$198.3 Million Lost in Exploits, Scams, and More

It is quite clear that the month of June 2024 has not been a good month for the cryptocurrency industry mainly because several platforms and users have lost a lot of money due to cyber attacks. The data obtained from CertiK alerts reveals that till now, the different exploited, hacked, and scammed projects resulted in a loss of about $198. 3 million, which might make 2024 the second year to record the second-highest monthly loss. 

BtcTurk, a Turkish crypto exchange was the major contributor to this loss which lost nearly $90 million to a hacker attack. However, a few of the funds were recovered; the month revealed that the Crypto ecosystem is still full of risks. 

Exploits dominate losses 

Exploits were the main cause of the losses being estimated to be around $171. 3 million through different breaches and vulnerability cases. Such scenarios point to contemporary threats to decentralized finance (DeFi) applications and systems, which remain the main target of attackers.

Flash loan attacks 

Specifically, flash loan attacks were estimated to cost close to $23.5 million in June. Flash loans enable its users to borrow huge amounts of money with no collateral required to be posted as security since the borrowed amount has to be paid in full through a single transaction. However, such mechanisms are abused by malicious parties for market manipulation and emptying out the liquidity pools to the tune of millions of dollars. 

Exit scams 

Self-regarding frauds, which are upfront exits of the project developers, led to the loss of about $4. 8 million. 

Recovery Efforts

Despite the rather high overall amounts of money lost, there were instances of pertinent recoveries carried out. Approximately $1.3 million of the stolen funds were recovered due to the activities of various security teams and Blockchain analytics firms. That brings yet again the recovery rate into the focus, downplaying the calls for far more potent prevention strategies and immediate reaction to threats.

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