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October saw continued challenges in the cryptocurrency sector, with hacker attacks and phishing scams resulting in $181 million in losses, according to a recent report by blockchain analytics firm PeckShield.
Although a drop from the $120 million seen in September, these incidents underscore ongoing security issues in digital assets.
#PeckShieldAlert In October 2024, there were ~20 hacks in the crypto space, resulting in losses of ~$88.47 million. #Top 5 Hacks in October 2024: –#RadiantCapital: $53M (bridged to #Ethereum) -U.S. Government seizure funds: $20M (returned) –#Eigenlayer: $5.7M (laundered to…
Data indicates around two dozen incidents occurred, including large-scale breaches and scams.
Radiant Capital breach
The most significant breach in October involved Radiant Capital, which suffered $53 million in losses from multi-signature wallets connected to the Ethereum network.
Multi-signature wallets, which require multiple private keys to authorize transactions, were exploited in this case, exposing vulnerabilities that allowed hackers access to Radiant Capital’s assets.
This breach marks a considerable hit for the decentralized finance (DeFi) project, raising questions about security practices across DeFi platforms.
In a rare case of recovery, US authorities seized $20 million of illicit funds, returning the stolen assets to their rightful owners.
The seizure signals growing cooperation between law enforcement agencies and blockchain analytics firms, potentially increasing the chances of recovering stolen assets in future cases.
Rug pulls, and phishing scams contribute to October losses
Data from OKLink highlights that phishing scams remain a major threat, accounting for $43.5 million in losses.
Notably, $35 million in fwDETH (a token used on decentralized exchanges) was lost due to a phishing attack involving a “permit” signature, a fraudulent method used to bypass user consent requirements.
⛑️OKX Explorer Security Monthly Report In October, onchain losses totaled $181 million, up 38.9% from last month. Phishing scams caused $43.53 million in losses. 👉On Oct 11, a Blast user lost $35 million in fwDETH due to a phishing “permit” signature. 👉On Oct 16, Radiant…
These scams continue to highlight the need for more robust user education and awareness in the cryptocurrency ecosystem.
Another significant contributor to October’s losses was private key leakage, which accounted for $7.2 million.
These incidents underscore a core vulnerability in the crypto landscape, as stolen private keys grant hackers unrestricted access to wallets.
Enhanced security measures, like hardware wallets and secure key management, are increasingly important for mitigating these risks.
“Rug pulls,” scams where developers abandon projects and abscond with investors’ funds, accounted for $45.7 million in October.
These incidents typically involve new tokens or DeFi projects that lack regulatory oversight.
The persistence of rug pulls signals a need for increased transparency and due diligence by investors before engaging with new crypto ventures.
While October’s $181 million in losses is substantial, it represents a 26% decrease from the $120 million recorded in September, when the crypto sector faced over 20 incidents.
The data suggests a partial improvement, with fewer high-profile cases compared to August, where total losses exceeded $300 million across fewer incidents.
Experts caution that this decline does not necessarily signal improved security across the board, as vulnerabilities remain in DeFi protocols, exchange security, and user awareness.
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