Crypto Hacks in October Drain $129 Million – What Went Wrong?

In the month of October 2024 alone, the crypto sector suffered more than 20 cyberattacks which resulted in an overall loss of about $129.7 million according to CertiK’s monthly report. This sharp increase in exploit activity from simple bridge exploits to phishing fraud demonstrates that centralized and decentralized finance platforms remain weak and exposed. 

Efforts to recover lost assets have been largely ineffective, with only about $245,000 recovered on average per incident. This highlights the urgent need for stronger security measures throughout the entire crypto industry.

Types of Attacks and Their Impact

In October, the losses were mainly caused by three types of attacks:

• Exit Scams: These fraudulent schemes accounted for about $1.2 million in losses.
• Flash Loan Attacks: A swift series of operations drained $1.5 million from the market.
• Platform Exploits: This category was the most damaging, with over 60% of total losses—$127 million—lost to intricate hacks targeting various cryptocurrencies and trading platforms.

October’s Most Significant Incidents

1. Radiant Capital Hacked: $53 Million Stolen

The largest of them affected Radiant Capital, a decentralized lending platform, as a result of which the attackers stole $53 million from the platform. Cyber pirates targeted weak points within the bridge that connects the cross-chain system of Radiant to Ethereum and manipulated the around-the-world route in order to steal funds. This has created more focus on cross-chain bridges highlighting the necessity of multi-level security and even extraordinary auditing.

2. M2 Exchange Hot Wallet Hack: $14 Million Stolen

Cryptocurrency exchange M2 Exchange reported a loss of $14 million from its hot wallets holding Bitcoin, Ethereum, and Solana. The attack was linked to a compromised wallet mechanism that gave unauthorized access to user funds. Security experts warn that high-value assets stored in hot wallets are at significant risk, as seen in M2’s case.

3. U.S. Government Crypto Seizure: $20 Million Recovered

Another interesting feature of October’s hack is that the U.S. government intervened to ‘recoup’ some $20 million. This retrieval shows there is still active work between blockchain businesses and governmental bodies in combating crypto-associated crime and establishes the future structure for cooperation in order to safeguard investors’ funds worldwide.

4. Eigenlayer Phishing Attack: $5.7 Million Compromised

Eigenlayer experienced a phishing attack that resulted in nearly $5.7 million being compromised. Experts indicated that exchanges like HitBTC and Bybit were used to launder the stolen funds, complicating the recovery process. This incident not only caused financial losses but also raised awareness about phishing threats in investment channels, especially regarding high-value assets.

5. Tapioca Foundation Drainage on BNB Chain: $4.7 Million Lost

In another exploit, the Tapioca Foundation lost $4.7 million on the BNB Chain. Cybercriminals targeted vulnerabilities in the Tapioca code, exposing flaws in Binance-connected environments. This attack adds to a series of high-profile hacks affecting Binance’s blockchain, emphasizing the need for rigorous code reviews and improved security measures.

Strengthening Cybersecurity in Crypto

The significant increase in hacks and scams in October 2024 highlights the urgent need for the crypto industry to strengthen its cybersecurity. The ongoing attacks on high-profile projects like Radiant Capital and M2 show that threat actors are focusing on valuable targets within the DeFi sector.

As the online lending landscape evolves, implementing regulatory measures, enhancing wallet security, and conducting thorough audits will be crucial for protecting investors’ assets and ensuring the long-term stability of the cryptocurrency market.

The line between innovation and vulnerability is thin. The crypto industry must tread carefully.