- April recorded the lowest cryptocurrency losses due to hacks and scams at $25.7 million.
- Losses decreased by 141% from the previous month, with fewer significant breaches.
- Major incidents included attacks on FixedFloat and the CondomSol presale exploit.
April marked a significant downturn in the cryptocurrency sector, with the lowest recorded losses due to hacks and scams, according to a report by security firm CertiK.
CertiK noted that the total losses for the month amounted to approximately $25.7 million, attributed to various exploits, hacks, and scams. This figure is the lowest since the firm started monitoring these incidents in 2021, coinciding with a decline in flash loan attacks and significant private hacks.
The report specifies that the $25.7 million lost in April represents the lowest monthly total since 2021, the year CertiK began its tracking efforts.
CertiK’s analysis revealed that the total losses in April were 141% lower than those in the previous month. Of the losses, about $21 million were due to exploits, with only three incidents causing damages exceeding $1 million each.
Flash loan attacks led to $129,000 in losses in April, with the largest single incident accounting for $55,000. This reflects the lowest level of flash loan attacks since February 2022. Additionally, exit scams contributed to $4.3 million in losses.
The noticeable decline in losses can largely be attributed to fewer private key compromises. In March, there were 11 incidents involving attacks on protocols through private key compromises, but this number dropped to just three in April.
Despite these encouraging signs, April was not without significant security breaches. For example, the presale address for the memecoin CondomSol on the Solana network was compromised, resulting in approximately $933,000 in losses to users.
The FixedFloat project experienced a significant breach, marking the second attack by the same perpetrators who previously targeted the project in February 2024. This incident was among the most notable in the recent report.
Exit scams were the second most costly type of exploit, with losses totaling $4.3 million. This was followed by instant loan exploits, which accounted for $129,000 in losses.
CertiK also addressed the situation with the crypto casino ZKasino, noting that it has not been included in the current report due to unconfirmed details. While not officially classified as a scam, CertiK indicated that it would revise its figures if the allegations against ZKasino were verified.
There was significant controversy surrounding ZKasino after it transferred funds to the Lido protocol on April 22, leading to widespread user discontent. It’s estimated that about $32 million could be lost in this suspected scam, with the ZKasino team purportedly collecting 10,515 ETH during the ZKAS token presale.
Shortly after CertiK released its report, the decentralized finance application Yield Protocol was compromised, leading to a loss of $181,000. Although the developers officially shut down Yield Protocol, the immutable nature of its smart contracts allowed some users to continue interacting with them.
Immunefi revealed that the cryptocurrency industry incurred $336 million in losses due to hacks and fraud in the first quarter of 2024, a significant reduction compared to previous years. For context, in 2023, hackers managed to steal approximately $1.8 billion, a stark decrease from the $4 billion reported in 2022.
According to data from DefiLlama, the total losses from cryptocurrency hacks as of April 1 have exceeded $7.7 billion, despite a 23% reduction in incidents during the first quarter of 2024 compared to the same period in the previous year. Since 2016, Defi protocols have been particularly vulnerable, with hackers pilfering around $5.8 billion from these platforms over the course of seven years.
