Rising Crypto Scams and Security Incidents, Over $32.2 Million Lost in October

October was a bad month for cryptocurrency investors due to frauds and security lapses. The blockchain research company CertiK reports that exit scams, flash loan manipulations, and other security flaws cost over $32.2 million in lost revenue.

A substantial portion of the losses—$22 million—came from the exploitation of holes in bitcoin platforms. The Fantom Foundation security breach, in which hackers stole $700,000 from an employee’s wallet, was the most well-known event. Since then, the stolen money has been moved to Tornado Cash, increasing the difficulty of recovery.

Exit Scams and Rug Pulls A $8 Million Hit

At $8 million, exit scams and rug pulls contributed significantly to the October losses. October’s most notable exit scam was carried out by Standard Cross Finance. Actors were employed to pose as developers and executives in the project, which was first presented as a respectable gaming endeavor. Ultimately, investors were duped out of $1.6 million.

It is believed that the same perpetrators of the Fontoch scam, which had previously defrauded investors and users of $31.6 million, are also behind this one.

This month, flash loan scammers stole $1.7 million. These frauds take advantage of flash loans’ ability to combine borrowing and repaying into a single transaction. Attackers utilize these loans to influence asset values or take advantage of weak points in smart contracts, frequently causing huge financial losses for platforms and consumers.

Platypus DeFi was the victim of the greatest flash loan fraud in October, which resulted in losses of $2.2 million. Thankfully, almost 80% of the pilfered money was finally found.

Scammers and hackers are focusing more and more on cryptocurrency investors, which emphasizes the necessity of strict security measures and attentiveness in the field. Although blockchain technology has numerous benefits, there are hazards associated with it. As such, investors should be cautious and keep up to date on any possible threats.