November Crypto Hack, Phishing, & Rug Pull Surge Cost Users $356 Million

In an end-of-year surge in cybercrime, the crypto industry faced an alarming $356.53 million loss due to hacks, phishing scams, and rug pulls in November 2023.

This staggering amount, as reported by Beosin EagleEye, marks a 6.9-fold increase from the losses in October, spotlighting the escalating security challenges in the digital currency sector.

Crypto Hacks on the Rise Once Again

Central to this financial upheaval were two major security breaches, each exceeding $100 million. The crypto exchange Poloniex, a notable figure in the sector, suffered a profound breach, losing approximately $126 million. This incident, along with a similar attack on HTX and its associated HECO Bridge, accounted for 66% of the total losses from hacker attacks in November.

These significant breaches were both linked to enterprises under Justin Sun’s ownership. They underscore the growing sophistication and scale of cyberattacks targeting major cryptocurrency platforms.

The Poloniex’s hack likely involved a complex private key compromise. This is part of a broader trend of increased phishing incidents. Hackers targeted several individual accounts, each for over $1 million.

Other crypto crime vectors also witnessed a notable rise, with multiple cases involving over $100 million. They encompassed various types of fraud and money laundering.

Stay Vigilant, Stay Secure

The total loss from exchange-based (CEX and DEX) security incidents alone amounted to $215 million. Such figures call for an urgent reevaluation of security practices within the industry.

It is recommended that large projects enhance their private key management, conduct regular security audits, establish comprehensive emergency plans, and also improve security awareness training for their employees.

Moreover, the increase in phishing scams highlights the need for users to securely store private keys, carefully review transactions before signing, and remain vigilant against suspicious content.

ImmuneFi data claims that losses due to crypto hacks and fraud have reached $1.75 billion.

Read more: A Complete Guide to P2P Decentralized Exchanges (DEXs)