Blockchain security firm Peck shield has reported that hackers stole $93.4 million from 41 exploits on various crypto projects in April. While this is a significant decline from the over $200 million stolen in March, it is still higher than the $35.3 million stolen in February.
The largest exploit in April was the sandwich attack on maximal extractable value (MEV) bots, which resulted in a loss of $25 million. This attack prompted USDT issuer Tether to blacklist the validator address that drained the bots, drawing criticism from the crypto community. MEV bots have been controversial in the industry, given their ability to extract value from crypto traders. According to the MEV blocker, these bots have extracted over $1.38 billion from blockchain network users.
Another data showed that DeFi projects lost $276.4 million during the first quarter of the year. The hacks and exploits on various decentralized finance protocols raise concerns about the security of digital assets and highlight the need for stronger regulations.
The use of mixers by hackers to move their ill-gotten funds also remains a concern, with malicious players transferring over 1,000 ETH and 2,515 BNB into Tornado Cash, while 203 ETH were sent to Fixed Float. The US OFAC has placed sanctions on crypto mixer Tornado cash for allegedly laundering “$7 billion worth of virtual currency since its creation in 2019.”
These hacks and exploits also have an impact on the broader crypto industry, as they undermine investor confidence and hinder the growth of the market. As a result, governments around the world are considering regulation of the crypto industry to mitigate these risks.
While the decline in hacks and exploits from March to April is encouraging, however, the fact that over $90 million was still stolen highlights the need for continued vigilance and regulation in the crypto industry. With the growth of the market and the increasing number of investors, it is essential that the industry operates in a secure and transparent manner to prevent further exploitation.