Q1 witnessed $330 million in losses, while Q2 reported $333 million. In stark contrast, the third quarter already recorded losses of nearly $890 million.
September 2023 has proven to be a grim month for the crypto market, with blockchain analytics firm CertiK revealing that it has witnessed a staggering rise in crypto-related exploits, hacks, and scams during this period.
According to CertiK’s findings, a total of approximately $332 million has been lost to these illicit activities within the span of a single month.
Notable Exploits Flagged by CertiK
CertiK highlighted that the most significant contributor to September’s staggering losses was the Mixin Network attack, which occurred on September 23.
Mixin Network, a Hong Kong-based Decentralized Finance (DeFi) project, found itself at the center of a $200 million breach. The breach was traced back to a vulnerability in the network’s cloud service provider, through which malicious actors exploited a weakness to access and drain funds.
Another major incident that rattled the crypto community in September was the attack on the CoinEx exchange. This breach resulted in a staggering loss of $53 million. Crypto exchanges continue to be a prime target for hackers due to the vast sums of digital assets held in their wallets.
The month of September 2023 also witnessed an attack on Stake.com, a popular platform for crypto gambling. This breach led to losses of $41 million, further illustrating that even niche segments within the crypto ecosystem are not immune to exploitation. The Lazarus Group, a North Korean cyber team, has been blamed for both attacks. According to the most recent Dune Analytics data, the group presently has $45.6 million in crypto assets.
Crypto’s Tumultuous Year
Adding to the grim tally, September witnessed $1.9 million lost to exit scams, $400,000 to flash loan attacks, and another $25 million to phishing attacks, as reported by the blockchain security firm. In light of these statistics, the total losses in 2023 due to exploits, scams, and hacks have now reached a sobering $1.34 billion.
Blockchain security firm Beosin’s report on Q3 2023 revealed that losses from hacks, phishing scams, and exit scams exceeded expectations. The cumulative losses in Q3 alone surpassed the combined total of the first two quarters of the year.
Q1 witnessed $330 million in losses, while Q2 reported $333 million. In stark contrast, the third quarter already recorded losses of nearly $890 million, signifying an alarming acceleration of security breaches within the crypto sector.
The year 2023 has proven to be a tumultuous one for the crypto market, marked by a relentless invasion of exploits, scams, and hacks. The staggering $1.34 billion in total losses serves as a stark reminder of the urgent need for enhanced security measures, robust regulatory frameworks, and greater awareness among participants in the crypto ecosystem.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
