October Sees a Dip in Crypto Crime with Losses of $32.2M: CertiK

Web3 Theft Hits a Low Point

Crypto crime took a back seat in October, with losses amounting to $32.2 million, according to blockchain security firm CertiK. This marked a comparative lull in the year so far, with no single incident leading to a loss of more than $7 million. Compared to the total losses of $1.4 billion in the past ten months, October's figures were roughly a quarter of the monthly average. Only 38 incidents were reported, making it a quantitative low for the month.

Exit Scams on the Rise

While October saw a decrease in overall crypto crime, exit scams were the exception. These scams, where users lose money after a crypto project shuts down or disappears, increased fourfold compared to September. The highest recorded loss in this category occurred in May, when users of Fintoch lost nearly $32 million.

Exploits and Social Media Scams

Exploits, which involve taking advantage of vulnerabilities in cryptocurrency networks, reached a peak in September due to the breach of Mixin Network's cloud service provider, resulting in a $200 million loss. CertiK also highlighted the rise of scams on social media platforms. Recent data from the United States Federal Trade Commission revealed that almost half of all cryptocurrency scams in the past 18 months were linked to social media. Scammers have found various ways to deceive users, from pump and dump schemes to other fraudulent activities.

North Korean Lazarus Group Remains a Threat

CertiK's Q3 report identified the North Korean Lazarus Group as the "dominant threat actor" in the crypto space. This group has been involved in various cyberattacks targeting cryptocurrencies and has continued to pose a significant risk.