Crypto Hacks Reach $130 Million in October

Crypto hacks and rug-pulls are increasing as crypto becomes more and more widely used, so we have to stay alert. Hacking incidents have involved exploiting either loose ends in a blockchain network, crypto exchanges and digital wallets. A rug pull, on the other hand, involves sudden withdrawals of liquidity pools by the creators of decentralized projects, with investors’ funds disappearing into thin air. These frauds shake the trust in the crypto ecosystem and may turn out financially disastrous for the victims. These can be somewhat mitigated by being selective about which project to join and by taking proactive steps in safeguarding investors’ assets, such as using hardware wallets and diligence prior to investment. Also, regulators have finally started acting against various schemes in the crypto space-a proof of greater recognition of its need for greater oversight and consumer protection.

As the crypto market is growing and developing, and as more people get into it, education about and awareness of security measures become crucial. Any investor in this field should keep updated with the relevant cybersecurity trends so that they will not be found off guard if something goes wrong.
Of course, the best way to protect your crypto are cold wallets. I dedicated a separate page to my wallet reviews and I’ve reviewed all the best hardware (cold) wallets on the market, so make sure to check it out here.

In October, security incidents like exit scams, flash loan attacks, and exploits caused crypto losses to reach $129.6 million. According to data from CertiK, exit scams resulted in $1.2 million in losses, flash loan attacks caused $1.5 million in losses, while hacks and exploits led to a whopping $127 million in losses.

The biggest incident last month involved Radiant Capital, a lending protocol that lost over $50 million. Additionally, a $36-million phishing attack on a whale and a $13-million hack on the crypto exchange M2 also made the list of top security breaches.

Despite the $127 million in losses in October, there was a slight increase from September but a significant decline from the $324.7 million lost to exploits in May 2024.

Radiant Capital faced a major security breach on Oct. 16 when hackers accessed private keys and smart contracts, draining over $50 million in digital assets. The team discovered that hackers injected malware into the devices of three core developers. However, on Nov. 1, Radiant Capital announced that it had resumed its Ethereum lending markets after implementing new security measures, including transferring protocol ownership to a timelock contract with a 72-hour waiting period for adjustments.

In addition to Radiant Capital, another crypto user fell victim to a major exploit. On October 11, a crypto wallet lost 15,079 fwDETH, which is valued at around $36 million, due to a phishing transaction. Then, on October 31, the crypto exchange M2 revealed that it had been hacked for $13.7 million in crypto. According to crypto investigator ZachXBT, the hackers were able to swipe Bitcoin (BTC), Ether (ETH), and Solana (SOL) from the platform’s hot wallets.

Fortunately, M2 stated that they have resolved the issue and all customer funds have been returned.

In other words, the rise in crypto hacks and rug-pulls points to great diligence particularly needed in this cryptocurrency market. An investor should be wary by taking great care and conducting extensive research before investing in any project or platform. As much as DeFi presents great opportunities for financial growth and innovation, it is also fraught with huge risks because of a lack of regulation and oversight.

Stay alert, stay cautious. Always use a cold wallet and do not store or expose your seed phrase to the internet. Store it analogue (not digitally) and use metal plates to secure it against fire, water and other physical damage. In this post you will see which plates I use and recommend.

I also have a complete list of all the major crypto hacks since the very beginning to present day. You will find it in this post.

Stay safe and profitable!

☝These are my opinions, not financial advice, always DYOR.

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⚠️ DISCLAIMER ⚠️

The information contained in this video is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. The content of this post reflects solely my own opinions. Purchasing cryptocurrencies poses considerable risk of losses.

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