November of 2023 may just have been crypto's worst month. However, this isn't due to bearish market conditions, as some cryptocurrencies did make amazing returns.
CertiK, a company that monitors risks within the crypto sector, has recently released statistics on the staggering financial toll of fraudulent activities that took place in November.
The month witnessed an unimaginable increase in fraudulent incidents, unveiling a grim reality about the vulnerability of the crypto space.
According to CertiK's disclosures shared on X formally (Twitter), November incurred a shocking $363 million in losses due to exploits, flash loans, and scams within the crypto domain.
Of this sum, exit scams accounted for approximately $1.1 million, while flash loans constituted a huge portion, tallying up to around $45.5 million in losses.
However, the blower emerged from exploits, which amounted to a staggering $316.4 million. This financial devastation solidifies November's position as the most financially detrimental month witnessed in the crypto sphere of 2023.
Platforms Ravaged by Fraudulent Activities
CertiK's risk tracking platform further revealed insights into the platforms that bore the brunt of these fraudulent activities.
#CertiKStatsAlert🚨
— CertiK Alert (@CertiKAlert) November 30, 2023
Combining all the incidents in November we’ve confirmed ~$363M lost to exploits, hacks and scams
This makes November the most damaging month this year
Exit scams were ~$1.1M
Flash loans were ~$45.5M
Exploits were ~$316.4M
See more details below 👇 pic.twitter.com/QoDy6d8IJH
Among these, crypto exchange Poloniex suffered the most blow, with its hot wallets drained of a staggering $131.4 million due to exploits.
In response to the attack, Poloniex released a statement acknowledging the incident, mentioning that a portion of the stolen funds had been frozen.
Despite the losses, the exchange remained optimistic, stating that the lost funds were "within manageable limits" and could be covered by its operating revenue.
Following Poloniex, HTX/Heco Bridge suffered a similar financial exploit, incurring losses surpassing $100 million.
Moreover, November saw the decentralized trading platform KyberSwap fall victim to an attack that resulted in a loss of $45 million.
Other notable platforms that recorded multi-million dollar financial losses due to exploits in November include Kronos Research, Raft Lending, CoinSpot, Onyx Protocol, and MEV Bot.
Rise in Exit Scams: A Disturbing Trend
Beyond exploits, the month also witnessed a surge in exit scams across various crypto projects. Among these recorded incidents were SAI Pro, siphoning $751,000; To The Moon, absconding $291,621; Battle Royal Token, pocketing $83,716; and FCL, $17,012 missing.
It's pertinent to note that while November saw huge financial losses due to exit scams totaling $1.1 million, May previously held the record for the highest losses, with bad actors siphoning off $53.4 million compared to the $1.1 million in November.
The Ongoing Battle Against Crypto Fraud
With these daunting challenges, CertiK continues to play a major role in highlighting the vulnerabilities and risks within the sector.
The recent statistics highlight the need for stronger security measures, regulatory frameworks, and investor education to prevent fraudulent activities.
The month of November serves as a stark reminder of the cryptocurrency market's susceptibility to fraud and exploitation.
This report underscores the need for a united front among industry stakeholders, regulators, and security firms to bolster defences against fraudulent activities. By doing so, investor interests can be protected, and trust can be instilled within the crypto ecosystem.