coingabbar.com
Crypto exploits, scams, and hacks continued to plague the industry in April, resulting in more than $103 million in funds lost
According to a report by blockchain security and auditing firm CertiK, the month saw major crypto exploits, including $25.4 million lost due to several MEV trading bot exploits on April 3, $22 million stolen in a hot wallet exploit at Bitrue exchange, and the hack of South Korean GDAC exchange resulting in a loss of $13 million. The total lost to crypto and DeFi exploits in the month amounted to $74.5 million, accounting for approximately half of the $145 million exploited in the first four months of the year.
Flash loan attacks also saw a rise in April, with approximately $20 million lost, mainly due to a hacker exploiting an old smart contract on Yearn Finance on April 13. Meanwhile, total funds lost to exit scams reached $9.4 million, with the top exit scam being Merlin DEX, which lost $2.7 million. CertiK was investigating a "potential private key management issue" at the exchange, which had been audited by CertiK and warned about centralization issues.
Overall, April saw over 50 crypto exploits, scams, hacks, and rug pulls, a significant portion of which were meme-coin rug pulls, according to De.Fi's Rekt Database. On April 28, the Polygon-based Ovix protocol suffered a flash loan attack resulting in a loss of $2 million. The month's total funds lost due to crypto exploits account for half of the total crypto exploited so far in 2023, highlighting the industry's ongoing vulnerability to malicious actors. The surge in losses also emphasizes the need for robust security measures and regulation in the crypto space.
CertiK's report is part of a wider trend of increased monitoring and regulation of the crypto industry by governments and regulatory bodies worldwide. The US Securities and Exchange Commission (SEC) recently imposed fines against Up Global, Coinme, and Bergquist for violating securities laws in the crypto space. The penalties demonstrate the SEC's commitment to monitoring and regulating the industry to ensure compliance with securities laws.
As the crypto industry continues to grow and mature, it will face increasingly sophisticated and frequent attacks from bad actors. Therefore, it is vital for companies and investors in the crypto space to implement rigorous security measures and for regulatory bodies to create and enforce effective regulations to protect investors and prevent fraud.