The crypto sector remains susceptible to malicious activities, with hackers showing relentless determination. Just two months into 2024, crypto scams have already emerged, resulting in significant losses. According to CertiK, a blockchain auditor, February alone witnessed over $160 million in losses due to crypto hacks and scams. While this amount decreased compared to January, cumulative losses from hacks, scams, and exploits have reached $343.5 million year-to-date.
CertiK’s recent update highlights a series of sophisticated scams in 2024. Most of February’s losses, totaling around $101 million, stemmed from exploiting vulnerabilities in crypto projects. CertiK’s social media mentions various instances of exploitation, including the February 28 incident where Seneca USD, an omnichain CDP protocol, was exploited, resulting in the theft of at least $3 million worth of assets. PlayDapp, a South Korean blockchain game development platform, experienced the largest exploit, with an attacker leveraging a smart contract vulnerability to steal $32.35 million in cryptocurrency. Other notable exploits affected platforms like Fixed Float, Jihoz.Run, and DuelBits, with losses, according analytics of CoinFactiva, ranging from $4.66 million to $26 million.
Exit scams also contributed to losses in February, with investors losing $58.2 million. BitForex, a Hong Kong-based cryptocurrency exchange, accounted for a significant portion of these scams, abruptly going offline after a mysterious withdrawal of $56.5 million from its hot wallets. RiskOnBlast, a gambling and exchange platform, disappeared with $1.29 million worth of investor funds.
Additionally, flash loans resulted in losses of $138,000, a considerable decrease from January’s $15.3 million. Notably, $6.4 million was returned, with the largest reimbursement coming from the Seneca exploiter, who returned 1,537 ETH worth $5.3 million to the project.
Despite the security measures implemented, crypto scams persist, posing challenges to the industry’s integrity. While recent reports indicate a reduction in scams and exploits from 2022 to 2023, the ongoing battle against malicious actors underscores the need for continued vigilance and robust security measures in the crypto space.
