Cryptocurrency hacks and scams led to a substantial financial loss of approximately $364 million in the month of April, according to CertiK's reporting.
In an alarming surge, the crypto world suffered a megabuck heist in April, with a single attack causing the majority of the damage. According to CertiK's April 30 X post, a whopping $364 million in digital assets were pocketed by cyber villains—that's a whopping 1,163% increase from the $28.8 million losses recorded in March.
One unfortunate American senior became the biggest target, losing an astounding 3,520 Bitcoin, valued at a staggering $330.7 million. The attacker, employing sophisticated social engineering tactics, managed to worm their way into the victim's wallet, making this the fifth-largest crypto theft on record, as we had previously reported.
Leaving this calamitous incident aside, April's total losses amounted to a more manageable $34 million, still marking a 21% rise compared to the previous month. CertiK identified phishing, access control exploits, social engineering, and price manipulation as the primary attack vectors.
The good news? More than 50% of the stolen funds were recovered over the course of April. Recovery efforts included:
- Full repayment to KiloEx, which suffered a $7.5 million exploit but saw its funds returned just four days later.
- ZKsync Association's successful recovery of $5 million worth of stolen tokens following a breach in its airdrop distribution contract. The attacker agreed to return all funds in exchange for a 10% bounty.
- Loopscale's reclaiming of $5.8 million after negotiating directly with the perpetrator, who agreed to return the funds in exchange for a 10% whitehat bounty and immunity from legal action.
Surprisingly, despite the April surge, February remains the costliest month to date, with losses soaring to a shocking $1.53 billion. As earlier reported, the majority of these losses were caused by two major incidents: $1.46 billion exploit on crypto exchange Bybit, and stablecoin issuer Infini's $49.5 million loss in a separate attack.
Before we dive into more hacks and heists, let's take a step back to reflect on the industry's strength. When it comes to the crypto sphere, 2021 has been a bit of a rollercoaster ride. Several renowned hacks and scams occurred, impacting the industry's security and reputation like never before.
One of the notable hacks was Poly Network's, where approx. $613 million were stolen, the largest at the time. Hackers exploited a vulnerability in the network's smart contracts to drain cryptocurrency from various wallets. Though almost all of the funds were returned, this incident highlighted the need for enhanced smart contract audits and improved wallet security.
Another heist involved Liquid Global Exchange, where $97 million were stolen. Attackers exploited a warm wallet vulnerability, gaining access to Ethereum and other assets. Though recovery efforts are on the down-low, many exchanges often work with law enforcement to trace and recover stolen funds.
Lastly, Cream Finance experienced a significant hack, leading to a loss of $130 million. Little is known about successful recoveries, but the crypto community has learned to implement new security measures following these incidents, such as bug bounty programs that incentivize white hat hackers to identify vulnerabilities.
In the face of these challenges, the crypto industry has shown remarkable resilience and adaptability, tightening its security protocols and fostering closer collaboration between industry players and law enforcement agencies. So, while the road ahead may be bumpy, the future of cryptocurrency remains hopeful.
- The crypto world suffered a significant loss in April, with $364 million in digital assets stolen, according to a report by CertiK.
- One of the largest victims was an American senior who lost 3,520 Bitcoin, worth $330.7 million.
- The attack vector involved sophisticated social engineering tactics that enabled the attacker to access the victim's wallet.
- The attack was the fifth-largest crypto theft on record, having been previously reported.
- Despite the losses, more than 50% of the stolen funds were recovered in April.
- Recovery efforts included repayment to KiloEx, ZKsync Association's recovery of $5 million in tokens, and Loopscale's reclaiming of $5.8 million.
- In a surprising turn of events, the costliest month to date remains February, with losses totaling $1.53 billion, as earlier reported.
