In October 2024, the crypto world faced an alarming rise in security incidents, with $129 million lost to a series of hacks, phishing scams, and exploit attacks. According to blockchain security firm CertiK, this financial hit reveals a significant ongoing security risk for crypto assets and the growing cyber threats.
Major Crypto Losses Incidents in October
The October losses primarily resulted from major protocol exploits, accounting for $127 million. Smaller but notable exit scams and flash loan attacks made up the remainder. Here’s a breakdown of the key October 2024 hacks:
- Radiant Capital hack: The most significant single incident involved Radiant Capital, a DeFi lending platform, which suffered a $50 million breach on October 16. Hackers compromised the platform’s private keys and accessed smart contracts on both the BNB Chain and Arbitrum networks. This attack led Radiant Capital to temporarily halt services as it strengthened its security measures.
- Phishing attack on a crypto whale: Another major crypto loss came from a phishing scam that led to the theft of approximately $36 million from a high-net-worth individual, commonly known as a “whale.” The phishing attack exploited the whale’s signature authorization, allowing the attackers to drain their wallet.
- M2 Exchange hack: On October 31, crypto exchange M2 reported a $13.7 million hack where attackers exploited vulnerabilities in its hot wallets, primarily targeting Bitcoin. Blockchain researcher ZachXBT confirmed that the funds were actually removed from the exchange's operational wallets.
Growing Threat of Exit Scams and Phishing Attacks
Exit scams and phishing attacks continued to pose a risk, though their impact in October was less severe in terms of total losses. These scams exploit user trust in new projects or popular investment schemes. For example, October saw around $1.2 million loss in exit scams, in which project developers disappeared with investors’ funds.
Phishing scams, such as the one involving the crypto whale, remain a pervasive risk. These schemes trick users into revealing sensitive information or signing fraudulent transactions, allowing attackers to gain control over wallets.
Preventative Measures: How the Industry is Responding
In response to the rising threat of security incidents, many crypto projects and platforms are adopting enhanced security protocols. Radiant Capital, for instance, has taken preventive measures by implementing a timelock contract that requires a 72-hour waiting period for any protocol changes. This extra protection aims to prevent unauthorized access, a measure that more protocols might adopt to curb similar losses.
Industry players and regulators are also increasingly advocating for improved security standards and best practices. The introduction of insurance options, bug bounty, and multi-signature wallets is becoming more common, allowing both projects and users to better safeguard assets. However, as attackers continue to develop new tactics, the crypto community must remain vigilant and adaptable to evolving risks.
Lessons and Takeaways for Crypto Investors
The October 2024 crypto losses emphasize the need for improved security on both organizational and individual levels. The persistence of exploits and scams shows that as blockchain technology grows, so do the tactics of cybercriminals.
For investors, it’s crucial to stay vigilant: double-checking contracts, avoiding unknown links, and ensuring platform reputations before investing.