- Cryptocurrency users lost nearly $2 billion to scams, rug pulls, and hacks in 2023.
- Over $187 million were lost to hacks and exploits in March 2024, with roughly $ 99 million recovered.
The crypto industry had become a hotspot for hackers, supposedly susceptible to scams and exploits. However, this long-told narrative seems to shift with the recent statistics. According to Banklesstimes.com, crypto hacks hit a notable downturn in April this year, with a substantial decline of 141% from the previous month.
Banklesstimes crypto expert Elizabeth Kerr comments:
Banklesstimes crypto expert Elizabeth KerrRegulatory interventions and stricter compliance requirements have compelled crypto entities to prioritize security and adopt best practices in safeguarding user funds. The latest slump in hacks and exploits stands as an astounding achievement for the crypto industry, given that a few years back, the massive loss in billions was reckoned to be the fall of the crypto industry.
Crypto Exploits and Scams in April 2024
In April a total of $60.2 million was stolen from 40 individual hacking incidents. About $25.7 million was lost to scams, exploits, and hacks during the month. Among the losses $4.3 million was lost to exit scams, $129,000 to flash loans, and $21 million to exploits. Smart contract exploits significantly contributed to the total run, as almost $2 million was stolen in three days.
Pike Finance fell victim to this attack even as the month concluded. A hacker utilized a vulnerability in their smart contract to alter the drain address, siphoning over $1.4 million worth of Ether, $150,000 worth of Optimism (OP), and over $100,000 worth of Arbitron (ARB) tokens. Pike Finance is now offering a 20% reward for the return of its stolen assets.
However, this was not the first exploit on Pike Finance; the institution lost a whole $300,000 on April 26, citing urgent rectifications for its smart contracts.
Q1’24 Crypto Losses
While April marks a possible new era for the crypto industry, it should be noted that Q1 24 records a significant loss of over $824 million across 67 breaches. This figure represents over half of the previous year’s first-quarter stolen funds, roughly $324 million. The surge in stolen funds for the quarter underlines how crypto attacks still threaten the industry despite April’s incredible victory.
Analysts should be keen to observe the losses in the coming months to determine whether the crypto industry is improving its security or continually being bypassed. Besides, the coming months will be vital in fueling or quelling regulatory scrutiny.
