June 2024 has been tough for the cryptocurrency industry, with many platforms and users suffering significant financial losses due to cyber attacks. Data from CertiK alerts shows that various exploits, hacks, and scams have resulted in approximately $198.3 million in losses. This could make June 2024 the second-highest month for losses in cryptocurrency history.
But what exactly went wrong, and how can you protect yourself? Dive deeper to find out!
Exploits, Vulnerabilities, Losses
One of the biggest contributors to these losses was BtcTurk, a Turkish crypto exchange, which lost nearly $90 million in a hacker attack. Although some funds were recovered, this incident highlights the ongoing risks in the crypto ecosystem.
Exploits accounted for an estimated $171.3 million in losses. Various breaches and vulnerabilities in decentralized finance (DeFi) applications and systems have made them prime targets for attackers, showcasing the serious threats facing the DeFi sector.
Flash Loan Attacks
Flash loan attacks alone were estimated to cost around $23.5 million in June. Flash loans allow users to borrow large sums of money without collateral, as the loan must be repaid within a single transaction. Malicious actors have exploited this to manipulate markets and drain liquidity pools, causing substantial financial damage.
Exit scams
Exit scams, where project developers abruptly abandon their projects and abscond with investors’ funds, resulted in approximately $4.8 million in losses. These frauds have further eroded trust in the cryptocurrency community.
Successful Recoveries
Despite the high overall losses, there were some successful recoveries. Around $1.3 million of stolen funds were retrieved thanks to the efforts of security teams and blockchain analytics firms. These recoveries highlight the importance of immediate response strategies and the need for robust prevention measures.
June 2024 has reminded us of the vulnerabilities and risks in the cryptocurrency industry. While significant losses have been incurred, the efforts to recover stolen funds and improve security measures provide hope for the future. The industry must continue to strengthen its defenses against cyber attacks.
Read Also: This Week in Crypto: Social Media Hacks Fuel $573M Q2 Losses
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