Crypto Security Incidents in October Result in Loss of $129M
Crypto-related losses increased significantly in October 2024 as an estimated $129.6 million was lost due to various security incidents. According to blockchain security firm CertiK, losses due to exit scams reached $1.2 million, while flash loan attacks contributed $1.5 million. However, exploits were the contributor to the majority of this month’s losses, reaching as high as $127 million.
Radiant Capital’s $50 Million Breach
The most outstanding of them was the lending protocol Radiant Capital, which lost about $50 million. On October 16, hackers attacked the BNB Chain and Arbitrum markets of Radiant Capital; by so doing, they stole the protocol’s private keys to access smart contracts. It was then discovered that the reason behind this lay in the malware infection on the devices of its core developers. As a precautionary measure following the incident, Radiant Capital has transferred ownership of the protocol into a timelock contract that allows for an added waiting time of 72 hours before changes can be made for security reasons.
Whale Loses $36 Million in Phishing Attack
Another one was the phishing attack against a prominent crypto holder, or “whale,” on October 11. This time, the victim signed a malicious transaction and lost 15,079 fwDETH, or about $36 million. This case underlined once again the risks users are exposed to due to phishing schemes, as well as the need to check the legitimacy of a particular transaction whenever large assets are involved.
M2 Exchange Compromised for $13.7 Million
On October 31, crypto exchange M2 confirmed a breach, putting losses at $13.7 million in Bitcoin, Ether, and Solana. Assets were siphoned from the exchange’s hot wallets. Crypto investigator ZachXBT said that the M2 attack probably exploited weaknesses in their security protocols. M2 assured customers that their funds had been totally replaced and took steps to remedy the weaknesses in security exposed by the attack.
A Month of Increased Crypto Vulnerability
While these represent a 2.91% increase from the $123.4 million recorded last month, September, the losses are considerably lower compared to the $324.7 million in losses reported during May this year. These incidents bring to fore the fact that crypto assets continue to face unceasing threats from sophisticated scams and attacks, even with increased awareness of security measures, hence there’s high necessity for prudent security practices across platforms and by users.
