Cryptocurrency Attacks Cause Nearly $60 Million in Damages in May, Reports Certik

By 0xK2 06/1/23 1:16 PM

In the month of May, the cryptocurrency industry witnessed a series of attacks that resulted in damages amounting to nearly $60 million, according to cybersecurity firm Certik. The company revealed that the total assets lost through flash loan attacks, scams, and decentralized finance (DeFi) exploits reached a staggering $59.8 million.

Since the beginning of the year, approximately $500 million has been stolen through such malicious activities, although this figure is lower than the previous month of April, which saw attacks causing $103 million in damages, as reported by Certik.

One of the most significant incidents leading to substantial losses was orchestrated by the investment platform Morgan DF Fintoch. ZachXBT, an on-chain detective, accused the platform of siphoning off $31.6 million. The company employed various fraudulent statements and even used actors to impersonate its CEO.

Cryptocurrency Attacks in May: Insights from Certik

Another attack involved a flash loan targeting the DeFi project Jimbos on Arbitrum. The protocol lost 4,000 ETH (equivalent to $7.5 million) on May 28. The project team is currently cooperating with authorities to investigate the matter. Prior to the attack, the project had made a commitment to allow the perpetrator to retain 10% of the stolen funds if they returned them to the project.

Hackers continue to utilize “mixing” protocols to launder their stolen funds. On May 31, Peckshield reported that 956 ETH and 8,410 BNB were transferred to Tornado Cash, while 450 BNB were sent to Fixed Float.

These attacks highlight the persistent threats faced by the cryptocurrency industry, despite ongoing efforts to enhance security measures. The decentralized and pseudonymous nature of cryptocurrencies makes them an attractive target for malicious actors seeking financial gains. As the market continues to grow and innovate, it becomes crucial for companies and individuals to prioritize robust security protocols and remain vigilant against emerging threats.

Certik emphasized the need for greater awareness and education within the crypto community to mitigate the risks associated with these attacks. Furthermore, collaboration between security firms, regulatory bodies, and industry participants is vital to effectively combat and prevent such incidents in the future.

As the cryptocurrency ecosystem evolves, it is essential for all stakeholders to work together to foster a safer environment for investors and users. Only through concerted efforts can the industry establish a foundation of trust and stability, enabling its full potential to be realized while minimizing the risks posed by malicious actors.

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