Several high-profile cryptocurrency hacks and scams in November make it the month of the year with the most financial damage.
According CertiK’s According to data, November was the most financially destructive period of the year, with losses amounting to approximately $363 million due to a series of crypto exploits, hacks, and scams. Exit scams contributed to the month’s toll, with around $1.1 million lost as projects disappeared along with investor funds, eroding confidence in burgeoning platforms and new coin offerings. These scams often involve creators of crypto platforms or coins absconding with users’ deposits, leaving investors with worthless assets.
However, the largest portion of the losses came from exploits totaling approximately $316.4 million. The Poloniex and HTX hack alone caused losses of more than $250 million. The flash loan attack on decentralized financial (defi) exchange KyberSwap caused a loss of $47 million. The sophisticated attacks exploit the lending mechanisms of defi platforms, allowing attackers to manipulate market prices and drain funds.
The increase in attacks and scams in November can be attributed to recent positive developments in the cryptocurrency market. With daily trading volume and transactions increasing after a prolonged crypto winter, hackers are actively searching for new vulnerabilities. November’s staggering statistics are a warning to platforms and users heading into the new year.
