October Crypto Hacks and Exit Scams Drain $129M from Investors

Online scams and security incidents continue to plague the crypto space despite calls for increased awareness by stakeholders. Malicious actors still send out attacks with the intention of defrauding unsuspecting victims of their funds. In October, total losses from scams and hacks total $129 million.

Largest Losses Stem from Technical Exploits

According to data shared by CertiK, a blockchain security firm, exit scams, flash loan attacks and exploits accounted for $129. 7 million in losses. Analysis of the combined incidents in October showed that exploits by bad actors in the digital space accounted for about $127 million. Flash loan attacks and exit scam accounted for $1.5 million and $1.2 million respectively.

Exploits refers to funds lost to technical vulnerabilities or security breaches. In October, Radiant Capital, a lending protocol, suffered the highest loss. The platform lost 50 million following a breach on its BNB Chain and Arbitrum markets. Despite halting market activities, the hacker drained the aforementioned amount.

According to the Radiant Capital team, the malicious attacker gained access to the devices of at least three of its core developers. They were able to compromise the devices via malware injection. After the hack, Radiant Capital resumed its lending market on November 1. It assured that all necessary security measures and changes have been effected to protect the protocol.

Hacks and Crypto Scams Targeted Individual Users and Exchanges

A crypto whale also lost 15,079 fwDETH, from its wallet on October 11. According to Scam Sniffer, the asset worth about $35 million disappeared after the whale signed a phishing transaction. The victim had signed a “permit” phishing signature which enabled the bad actors to wipe off the asset.

Another notable fraud in the crypto space involved the exchange, M2. The exchange announced a $13.7 million hack in different cryptocurrencies. The attackers stole Bitcoin, Ethereum, and Solana from M2’s hot wallets. However, according to a statement by M2, the situation has been resolved with customers’ funds restored.

The Impact of Growing Awareness

Interestingly, CertiK says the losses to malicious attackers in the month of October still remains the lowest within a six months period.

A cyber security expert stated that while these were substantial losses, it suggests the trend might be improving. He attributes this reduction to more awareness and adoption of security measures by platforms and users being more vigilant.