October witnessed $129 million in crypto losses due to major security breaches, with exit scams and hacks affecting users and platforms.
Crypto Losses Soar to $129M in October
Crypto industry losses surged to $129.6 million in October, driven by a string of exit scams, flash loan exploits, and hacks. Key blockchain security firm CertiK reports that these incidents signal an urgent need for stronger security measures across platforms.
Exit Scams and Flash Loan Exploits Rise
Blockchain firm CertiK identified exit scams and flash loan exploits as significant threats in October. While exit scams caused $1.2 million in losses, flash loan exploits added $1.5 million more. Combined, they contributed heavily to the escalating losses in the crypto sector.
Exploits Top Losses at $127 Million
Of all the incidents, exploits were the most damaging, totaling $127 million in losses. These high-profile attacks continue to undermine investor confidence, signaling ongoing challenges in crypto security.
Radiant Capital Hack: The Largest Incident in October
The Radiant Capital exploit marked the largest loss, with hackers breaching the platform’s BNB Chain and Arbitrum markets. This attack, which drained over $50 million, exposed vulnerabilities in Radiant Capital’s systems, later linked to a malware attack on core developers’ devices.
Radiant Capital Reinforces Security Post-Hack
Following the hack, Radiant Capital restored its Ethereum lending markets with tighter security. A new timelock contract, requiring a 72-hour waiting period for protocol adjustments, has been implemented to prevent future unauthorized access.
Whale Loses $36 Million to Phishing Attack
A crypto whale became a major victim of October’s hacks, losing 15,079 fwDETH (worth about $36 million) to a phishing exploit. The attacker gained control of the wallet by manipulating a signed transaction, underscoring the need for wallet security vigilance.
M2 Exchange Loses $13.7 Million in Halloween Hack
On October 31, the crypto exchange M2 announced a hack that resulted in $13.7 million in stolen assets. Crypto investigator ZachXBT revealed that attackers siphoned Bitcoin, Ether, and Solana from M2’s hot wallets. M2 assures users that the situation is resolved and that customer funds have been fully restored.
Rising Threats Highlight Security Gaps in Crypto
October’s losses represented a 2.91% rise from September’s figures, yet a significant 60% drop from May’s record-breaking $324.7 million losses. Despite the decline, these breaches continue to expose vulnerabilities in crypto platforms, emphasizing the need for ongoing security improvements.
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