October Sees $129M Crypto Losses from Scams, Hacks, and Flash Loan Attacks
Crypto world faces $129 million loss in October
October turned into a costly month for the cryptocurrency industry, with losses hitting $129.6 million due to a series of security incidents. According to blockchain security firm CertiK, the month saw an array of exploits, exit scams, and flash loan attacks that chipped away at investor confidence and funds.
Exploits topped the list, accounting for a staggering $127 million in losses. Flash loan attacks contributed another $1.5 million, while exit scams added $1.2 million to the tally. Among the most significant incidents was the Radiant Capital hack, which drained over $50 million from the lending protocol after hackers breached its BNB Chain and Arbitrum markets. The exploit was traced back to a malware injection targeting devices of three core developers, allowing attackers to gain access to Radiant's private keys and smart contracts. To prevent future breaches, Radiant has now moved protocol ownership to a timelock contract that enforces a 72-hour delay on any security adjustments.
The second-largest incident involved a phishing attack on a high-value crypto wallet, costing its owner around $36 million in fwDETH tokens. Additionally, crypto exchange M2 disclosed a $13.7 million hack on October 31, during which attackers siphoned off Bitcoin, Ether, and Solana from its hot wallets. M2 assured users that the breach has been resolved and customer funds were fully restored.
While October’s total losses showed a slight increase from September’s $123.4 million, the amount was still significantly lower than May 2024's staggering $324.7 million in losses. These incidents underscore the critical need for enhanced security as the crypto industry continues to navigate its vulnerabilities.