3 - 5 minute read
Cryptocurrency theft and scams have been on the rise, and the month of April saw no signs of slowing down. According to a report by CertiK, a crypto security and auditing firm, more than $103 million was stolen from crypto projects and investors in the month of April alone. This brings the year-to-date total loss to a staggering $429.7 million.
The month of April was particularly troublesome, with major crypto exploits leading to losses of millions of dollars. One such exploit involved the loss of $25.4 million due to several MEV trading bots on April 3. Furthermore, the Bitrue exchange fell victim to a hot wallet exploit, resulting in a loss of $22 million. The South Korean GDAC exchange was also hacked, leading to a loss of $13 million.
The total amount lost to crypto and DeFi exploits in the month amounted to $74.5 million, making up around half of the total $145 million exploited in the first four months of the year, according to CertiK. Flash loan attacks also took a toll, with around $20 million lost in the month, led mainly by Yearn Finance.
Exit scams also contributed to the staggering losses, with a total of $9.4 million lost in the month of April alone. The top exit scam for the month was Merlin DEX, which lost $2.7 million. CertiK reported that it was investigating a “potential private key management issue” at the exchange. This exit scam occurred even after the protocol was audited by CertiK, which had warned about centralization issues.
According to De.Fi’s Rekt Database, there were over 50 crypto exploits, scams, hacks, and rug pulls in April. A large portion of them was memecoin rug pulls. The most recent was the Polygon-based Ovix protocol, which lost $2 million in a flash loan attack on April 28.
The Bottom Line
The rise in crypto theft and scams is a warning sign for investors and traders. It is crucial for traders to remain vigilant and take steps to protect their investments. The rise in scams and thefts highlights the need for greater regulation and security measures in the crypto space. As the value of cryptocurrencies continues to surge, the risks of theft and scams will only increase. Traders must be prepared to navigate these risks and take the necessary precautions to protect their investments.
