The cryptocurrency world is dealing with a very concerning trend. In September 2023, a staggering $329.8 million was stolen in crypto-related exploits, emerging as the most devastating month so far this year.
Phishing, Scams, and Hacks Drain $1.34 Billion in 2023
The blockchain security firm CertiK has identified the primary contributor to this huge sum as the Mixin Network attack on September 23. During this incident, the Hong Kong-based decentralized cross-chain transfer protocol suffered a severe breach of its cloud service provider, which resulted in losses amounting to $200 million.
Other notable incidents in September included attacks on the CoinEx exchange and Stake.com. Those two incidents led to losses of $53 million and $41 million, respectively. The Lazarus Group, a hacking collective associated with North Korea, has been implicated in both of these major attacks. Recent data from Dune Analytics indicated that the group currently holds approximately $45.6 million in stolen crypto assets.
These exploits have pushed the year's total losses due to crypto-related incidents to an overwhelming $925.4 million. However, July stands as the second-worst month for exploit losses, with $285.8 million stolen.
Hacks, Scams, and Exit Scams Eclipse Q1 and Q2 Losses
Beyond the crypto exploits mentioned earlier, the month of September recorded substantial losses across multiple fronts. CertiK's data revealed that exit scams drained $1.9 million from unsuspecting victims, while flash loan attacks drained off $400,000. Additionally, the cryptocurrency community suffered a significant blow of $25 million due to phishing attacks during this period.
When considering the cumulative impact of crypto exploits, scams, and hacks throughout 2023, the total loss has now reached an alarming figure of $1.34 billion. It highlights the ongoing challenges and vulnerabilities in the digital asset space.
The blockchain security firm Beosin reported that losses from hacks, phishing scams, and exit scams in the third quarter of 2023 alone amounted to just under $890 million. This figure surpasses the combined losses identified in the first two quarters, which stood at $330 million in Q1 and $333 million in Q2.
