In October, the Web3 community experienced a notable reduction in theft incidents, marking a welcome departure from the recurring challenges of crypto crime. According to CertiK, a blockchain security firm, the month witnessed losses totaling $32.2 million across 38 incidents due to hacks, exploits, and scams. What’s significant is that none of these incidents resulted in losses exceeding $7 million.
This drop in losses during October provides a moment of respite for the Web3 space, which has been grappling with ongoing threats. When considering the ten-month total of $1.4 billion in losses, the contrast is evident. It’s worth mentioning that January held the second-lowest losses for the year at $33.7 million. October’s statistics should not be misconstrued as a sign of an overall decline in losses; rather, they reflect a month relatively devoid of major incidents. October’s 38 reported incidents were notably lower in number compared to previous months.
![Crypto crime activity declines in october, CertiK reports image 166](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-166.png?resize=663%2C1024&ssl=1)
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CertiK’s report for the third quarter highlighted the fluctuating trends in crypto crime. The number of incidents was 79 in July, dropping to 66 in August, and further decreasing to 39 in September. Interestingly, exit scams experienced a resurgence in October, increasing fourfold compared to their low point in September. It’s worth noting that this category reached its highest point for the year back in May, with users of the crypto project Fintoch losing nearly $32 million.
Conversely, exploits registered a peak in September, primarily driven by the $200 million loss incurred by the Mixin Network due to a breach of its cloud service provider. July saw the second-highest damage, with a significant portion attributed to losses stemming from the Multichain MPC bridge.
Certain patterns are discernible within the realm of crypto crime. Notably, CertiK has recently highlighted the proliferation of scams utilizing social media platforms. According to data from the United States Federal Trade Commission, nearly half of cryptocurrency scams over the past 18 months have been linked to social media. These platforms offer a range of opportunities for unscrupulous activities, from pump-and-dump schemes to various fraudulent activities.
CertiK’s findings underscore the continued presence of the North Korean Lazarus Group as a dominant threat actor within the crypto space. While the Web3 community may have experienced a quieter month in October, the persistent challenges of crypto crime require ongoing vigilance and security measures to protect against emerging threats.
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