A recent report by web3 security firm CertiK shows that crypto users lost a combined $28 million to various exploits, hacks, and scams in January 2023.
Exit scams and flash loan attacks
DeFi protocols and individual wallets were the main targets, resulting in the loss of $26.9 million in reported incidents. The DeFi lender LendHub was the biggest victim, losing $5.4 million in a hack on January 12th. Another individual targeted was Bitcoin Core developer Luke Dashjir who lost 216 bitcoins valued at $3.5 million.
Exit scams were also on the rise in January, with a total loss of $10.2 million. FUT, Yield Robot, First Free Finance, and PICC were among the scammers that stole over $6 million from investors. The biggest flash loan attack victim was the BRA token, losing $237,000 on January 10th. In total, the crypto sector lost approximately $762,000 to flash loan attacks.
#CertiKStatsAlert 🚨
— CertiK Alert (@CertiKAlert) January 31, 2023
Combining all the incidents in January we’ve confirmed ~$28M lost to exploits, hacks and scams
Exit scams were ~$10.2M
Flashloans were ~$762K
See the details below pic.twitter.com/2eFqw3GfsP
Conclusion
This report by CertiK highlights the need for increased security measures in the crypto industry. The growing number of exit scams and attacks on DeFi protocols and individual wallets show that crypto users must be more cautious and educate themselves about the risks involved.
Sad news for the #crypto community! #Rally social token platform announces the shutdown of its sidechain after Jan. 31 due to a challenging year for the industry. NFTs will no longer be accessible. #NFT #cryptoindustryhttps://t.co/mOFs3opdVp
— Logll Tech News (@LogllNews) February 1, 2023
Recommended reading: 5 Tips for Beginner Bitcoin Traders
(Image credit: logll.com)
Join Our Newsletter
Subscribe to receive our latest updates in your inbox!
Frequently Asked Questions
FAQ:
❓ What is the biggest risk to crypto users?
The biggest risk to crypto users is the growing number of exit scams and attacks on DeFi protocols and individual wallets. These scams and attacks can result in the loss of millions of dollars.
👉 What is the biggest loss suffered by a crypto user in January?
The biggest loss suffered by a crypto user in January was $5.4 million, which was lost by the DeFi lender LendHub in a hack.
🤠 What is the total loss suffered by the crypto industry in January?
The total loss suffered by the crypto industry in January was $762,000, which was lost to flash loan attacks.
