Despite significant developments like the approval of a spot Ethereum ETF and other positive events in May 2024, the cryptocurrency market witnessed substantial losses due to exploits, hacks, and scams. Recently, the security firm CertiK Alert posted on X (previously Twitter) that in May, the crypto world experienced a series of incidents resulting in confirmed losses of approximately $42.6 million.
Crypto losses reached $42.6 million in May 2024
However, there was some relief as $96.2 million was returned. Compared to April’s relatively lower losses of about $41.6 million, May’s losses saw a slight increase of around $1 million. The breakdown of losses reveals that exit scams accounted for roughly $1.8 million, while flash loans and exploits constituted the bulk, with losses of approximately $20.7 million and $19.7 million, respectively.
The major losses in May 2024, that crypto projects or firms experienced include Gala Games, Sonne Finance, Alexlab, Pike Finance, Genius Token, Pump Fun, and others. According to the report, Gala Games experienced $21.6 million in losses, Sonne Finance $20 million, Alex Lab $4.4 million, Pump Fun $1.9 million, Normie $0.9 million, and more.
These losses highlight the continuous challenges facing the crypto industry in terms of security and highlight the importance of robust risk management practices for investors and platform operators alike. Despite significant security measures being implemented by major countries to safeguard investors and traders, hackers and exploiters still manage to carry out these attacks in this rapidly evolving industry.
Overall crypto losses reach $80 billion
To date, the overall crypto losses in the rapidly evolving cryptocurrency industry due to exploits, hacks, and scams amount to approximately $80 billion. Out of these losses, only $6.7 billion worth of crypto has been recovered, representing around 7% of the total loss, according to data from the REKT Database.
Despite these hacks in May 2024, the cryptocurrency market remained stable, and top cryptocurrencies like Bitcoin, Ethereum, Solana, and Binance Coin managed to gain a price surge of 12%, 27%, 32%, and 6%, respectively.
