April Witnesses Record Decline in Crypto Losses, Certik Reports
Summary:
April saw a record low in losses from cryptocurrency-related scams and breaches, with only $25.7 million lost in attacks, according to blockchain security firm Certik's report. Notably, a fall in the number of private key compromises contributed to this decline. Several notable hacks and scams still occurred, leading to significant losses, including a major hack on Bitcoin Lightning Network exchange FixedFloat. Certik's analysis also showed the smallest number of flash loan attacks since February 2022 and a 40% decrease in exit scams.
In April, blockchain security firm Certik reported a significant drop in losses from cryptocurrency-related scams and breaches, reaching a historical low of $25.7 million. This is the lowest recorded figure since Certik began tracking such data last year. The report indicated a decline of 141% from the previous month's losses, primarily attributed to a reduced number of private key compromises. In contrast to 11 attacks reported in March, April only witnessed three such instances.
Although the reduced frequency of breaches and attacks was good news for crypto users, significant losses were still incurred from a few notable hacks and scams. Infamously, the Memecoin CondomSol swindled users by promoting a presale address on the Solana network, which resulted in a loss of around $933,000 of crypto. April 1 saw the Bitcoin Lightning Network exchange FixedFloat lose roughly $3 million due to a major hack, marking the second attack on the platform in 2024 with the first one occurring in February.
Further breakdown of the total losses revealed that a chunk of $21 million was due to exploits, three of which alone caused more than $1 million in damages each. Flash loan attacks, with the largest single case resulting in $55,000 in damages, accounted for $129,000 in total losses. Importantly, this represents the smallest number of flash loan attacks since February 2022. Additionally, exit scams were observed to decrease by 40%, with 13 reported cases in April.
The report doesn't account for ZKasino, amidst controversy over fund withdrawal restrictions imposed on investors. If the project is deemed a scam, Certik will adjust its figures accordingly. ZKasino incited the ire of its users after moving funds to the Lido protocol on April 22.
Just as the report was published, the DeFi app Yield Protocol reported an exploit leading to a loss of $181,000. Despite the app's official closure by its developer, some users were still able to interact with the immutable smart contracts.
Published At
4/30/2024 7:30:00 PM
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