The cryptocurrency sector faced a surge in hacks, losing over $357 million in April from 18 separate incidents. The data shows a dramatic increase in losses compared to earlier months, with notable cases including a $330.7 million Bitcoin transaction theft. Some recovered funds were reported, but significant concerns remain over overall security in the ecosystem.
In a troubling turn of events for the cryptocurrency world, recent data from PeckShield reveals that cybercriminals siphoned off approximately $357 million from crypto holders in April alone, a marked increase following a significant hack slump in March. This uptick in malicious activities, which saw 18 major hacks recorded, is particularly concerning given that the amounts lost to hackers soared nearly eleven-fold compared to the previous month.
Leading the chart of these incidents is an unauthorized Bitcoin transaction that resulted in a staggering loss of $330.7 million. This hack has unfortunately set the tone for a month grimly defined by breaches. Additionally, some other notable exploits include $7.5 million lost in a hack of the KiloEx decentralized exchange and $5.4 million from a ZKsync exploit – though both have managed to recover some funds back. KiloEx, in particular, saw $6.1 million of its stolen assets recovered with assistance from the major exchange, Binance.
In what seems like a continuous battle against breaches, Loopscale—a decentralized finance lending protocol—found itself on the wrong end of a serious attack, losing roughly $5.8 million on April 26. Fortunately, an agreement struck with the hacker allowed 90% of stolen funds to be returned, with a bounty of 10% offered as a reward for their honesty.
At the same time, MophoLabs also experienced a setback, coming in as a notable fifth with a reported $2.6 million loss due to an exploit last month. If you rewind to February, the crypto landscape saw its largest hack ever when Bybit lost $1.4 billion worth of Ethereum to the infamous Lazarus Group, a North Korean hacking organisation. As of now, updates regarding any recovery of those funds remain in the dark; reports indicate that the attackers managed to swap $1.2 billion of the stolen Ethereum into Bitcoin, muddying further any chances of clarity or recovery.
For context, the losses to hacks in prior months were $87.25 million in January, a staggering $1.51 billion in February, and then dropping to $33.46 million in March. As security concerns escalate, many within the community should be more vigilant than ever regarding their investments and practices.
Wahid, who has been reporting on these trends since 2019, continues to keep a critical eye on evolving threats and responses within the decentralised ecosystem on his newsletter, On-chain Monk, alongside contributions to major financial platforms like Yahoo Finance and Cointelegraph. Furthermore, readers are reminded that while this report aims for accuracy, it is crucial they conduct their own research before making financial decisions.
Disclaimer: Coinspeaker is dedicated to providing clear and unbiased information; however, it should never be interpreted as financial or investment advice.
