Surge in Crypto Losses: Major Hacks and Scams Impact October
The cryptocurrency sector faced heavy losses in October 2024 due to various security breaches, resulting in a total of $129.6 million in losses, according to a report by blockchain security firm CertiK. High-profile hacks, phishing scams, and protocol exploits contributed to the month’s hefty financial toll, underscoring the ongoing security risks in the crypto landscape.
Breakdown of October’s Crypto Losses
Security incidents varied widely, but exploits were the leading cause of financial damage, accounting for $127 million in losses. In comparison:
- Exit scams resulted in around $1.2 million in losses.
- Flash loan attacks caused another $1.5 million in losses.
CertiK’s data shows that the losses in October represented a slight increase (2.91%) from September’s total of $123.4 million but were still significantly lower than the record $324.7 million lost to exploits in May 2024.
Major Incidents: Radiant Capital, Whale Phishing Attack, and M2 Exchange Hack
Radiant Capital Hack: $50 Million Lost
Radiant Capital, a lending protocol, experienced the largest single loss in October, with over $50 million stolen on Oct. 16. The breach affected its markets on the BNB Chain and Arbitrum. Hackers reportedly accessed the private keys and smart contracts for the protocol after injecting malware into devices used by at least three core developers. Following the incident, Radiant Capital temporarily halted its markets and conducted a security overhaul.
On Nov. 1, the protocol resumed operations on its Ethereum lending markets, announcing enhanced security measures. One notable improvement was the transfer of protocol ownership into a timelock contract, which mandates a 72-hour waiting period for any changes, aiming to prevent future unauthorized access.
Whale Phishing Attack: $36 Million Stolen
A crypto whale fell victim to a phishing attack on Oct. 11, resulting in the loss of 15,079 fwDETH tokens, valued at approximately $36 million. The wallet was compromised after the user signed a phishing transaction, making it the second-largest loss of the month.
M2 Exchange Hack: $13.7 Million Stolen
On Oct. 31, crypto exchange M2 disclosed a security breach, revealing that attackers had managed to withdraw $13.7 million in Bitcoin from its hot wallets. Blockchain investigator ZachXBT confirmed that the funds were indeed taken from the exchange’s active wallets. In a statement, M2 assured customers that all funds had been restored and the issue had been resolved.
The series of high-value attacks highlights the ongoing security vulnerabilities in the cryptocurrency space. While October’s losses show only a slight increase over September, the incidents reveal the sector’s need for heightened security measures to protect both platforms and investors.
