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Certik reveals shocking details on scams in May

Published

2 years ago

June 1, 2023

In a shocking analysis, Certik Alert, a leading cybersecurity and blockchain intelligence platform, revealed that a total of $59.8 million had been stolen from the cryptocurrency industry due to different flaws, hacks, and scams.

The report emphasizes the dire necessity for increased security measures and highlights the ongoing problems in the digital asset ecosystem.

Certik Alert estimates that a total of $59.8 million has been lost to cybercrime during the past month. About $38.8 million, or the vast majority, could be traced back to exit frauds.

When fraudulent projects or platforms dupe investors, those funds simply disappear, leaving victims with huge losses. This kind of dishonest behavior is very common, and it continues to erode faith in the cryptocurrency industry, which slows its development.

Source: Certik

They also said that about $1.7 million of the total losses were due to flash loans, which are a new thing in the field of decentralized finance (DeFi). Flash loans, also called no-collateral loans, are a quick and easy way to get money.

Even though smart contracts can help people be more creative and find new ways to solve old problems, they have become a draw for people who want to take advantage of security flaws or manipulate markets. These instances highlight the importance of having better security procedures and a stronger DeFi infrastructure.

About $19.3 million was lost due to exploits, which involve taking advantage of flaws in blockchain protocols and smart contracts. Hackers can steal money from users or decentralized applications if they are able to breach security measures and exploit flaws.

These occurrences highlight the need for more solid security protocols in the cryptocurrency industry, which is facing persistent problems.