Home Crypto Market Movers Crypto Market Experiences Record Losses in November Due to Rising Cyberattacks: A Detailed Analysis

Crypto Market Experiences Record Losses in November Due to Rising Cyberattacks: A Detailed Analysis

In a tumultuous turn for the cryptocurrency sphere, November 2023 witnessed an unprecedented surge in cyberattacks, resulting in staggering losses exceeding $363 million. The crypto market, once perceived as a beacon of security, now finds itself grappling with a surge in malicious activities perpetrated by bad actors across various platforms and exchanges.

Blockchain security firm CertiK sounded the alarm bells, revealing in a recent tweet that nefarious individuals orchestrated over 14 incidents resulting in the pilfering of approximately $363 million worth of digital assets. This figure significantly surpasses the previous record set in September, which stood at $332 million, marking November as the direst month of the year in terms of crypto-related exploits.

Exploits emerged as the primary culprit, contributing to losses totaling $316.4 million. The most notable breach occurred on November 10 when the hot wallets of the U.S.-based crypto exchange Poloniex fell victim to a heist, amounting to over $131 million. The hacker brazenly absconded with more than 175 different tokens, each valued at over $10,000, including prominent cryptocurrencies like Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), and Shiba Inu (SHIB).

Additionally, security breaches at crypto exchange HTX (formerly Huobi) and the cross-chain Heco Bridge resulted in losses of $30 million and $86.6 million, respectively, further exacerbating the already grim situation.

Phishing scams also played a detrimental role, siphoning off substantial amounts from unsuspecting victims. Notably, a market participant fell victim to a $27 million phishing scam, while Taipei-based firm Kronos Research incurred losses amounting to $25 million. Another unfortunate victim lost $3.2 million to these fraudulent schemes, highlighting the evolving strategies employed by cybercriminals to exploit vulnerabilities within the crypto space.

Security breaches pierced the heart of the crypto world, with malevolent entities orchestrating over 14 incidents, pilfering assets and leaving a trail of financial wreckage. CertiK, a stalwart in blockchain security, unveiled the grim truth in a tweet, confirming the staggering loss of $363 million in a series of calculated strikes.

Exploits emerged as the chief architects of devastation, accounting for a staggering $316.4 million in losses. Among the calamities, the heist at the U.S.-based Poloniex exchange sent shockwaves, as over $131 million evaporated from its hot wallets on November 10. The thief’s haul encompassed a staggering 175 different tokens, each valued at over $10,000, culminating in a multimillion-dollar plunder. Notable among the looted assets were Bitcoin, Ether, Tether, USD Coin, and Shiba Inu.

The saga continued with HTX’s (formerly Huobi) crypto exchange and the cross-chain Heco Bridge falling victim to breaches, hemorrhaging $30 million and $86.6 million in assets, respectively. Phishing scams carved a dark narrative, with a market participant surrendering $27 million, and Kronos Research, a Taipei-based firm, grappling with a $25 million blow. Another victim succumbed to a $3.2 million phishing exploit.

Flash loan attacks, a growing concern within the decentralized finance sector, accounted for $45.5 million in losses for November. Kyber Network, a decentralized finance platform, suffered a significant breach resulting in approximately $45 million being siphoned off. Intriguingly, the attacker has stipulated complete control of the network as a condition for returning the stolen funds, adding a complex layer to the already intricate situation.

Despite exit scams causing fewer losses, market participants still fell victim to criminal activities, losing around $1.1 million. This unfortunate trend adds to the already concerning statistics of cyber-related financial crimes impacting the crypto market.

Summing up the year, the cumulative impact of exploits has led to a jaw-dropping $1.2 billion in losses, followed by flash loan attacks causing losses of $309 million, and exit scams resulting in the theft of $146 million. The alarming total of over $1.7 billion lost to hackers and scammers in the crypto realm paints a stark picture of the ongoing vulnerabilities plaguing the industry.

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Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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