April’s Crypto Catastrophes: Exploits, Scams, and Uninvited Losses

Crypto Mayhem: A Monthly Recap

April 2023 will be remembered as a particularly raucous month in the world of cryptocurrency, if not for the champagne popping, then certainly for the wallet-emptying exploits and unfortunate scams wreaking havoc on investors and projects alike. According to a report from CertiK, a leading crypto security and auditing firm, a staggering $103.7 million was lifted from unsuspecting victims, pushing the unfortunate year-to-date total to $429.7 million.

Major Exploits That Rocked the Crypto World

Let’s break down some of the villainous highlights of April:

• MEV Trading Bots: On April 3rd, our dear friends at MEV trading bots suffered $25.4 million in losses due to a nefarious exploit.
• Bitrue Exchange: A hot wallet exploit resulted in a hefty $22 million disappearing into the void.
• GDAC Exchange: South Korean snatchers were at it again, hacking the GDAC exchange and making off with $13 million.

Flash Loans: The Gremlins of Cryptocurrency

April was also not kind to flash loans, with approximately $20 million vanishing due to attacks primarily led by Yearn Finance. All it took was one exploited old smart contract on April 13, and just like that, the money was gone—much like my hopes of winning the lottery!

Exit Scams: A Disappearing Act

The month also saw a sprinkling of exit scams, summing up to $9.4 million, with Merlin DEX leading the tragic magic show by disappearing with $2.7 million. Interesting enough, this shenanigan took place after Merlin DEX had been audited by CertiK, who smartly flagged centralization issues before the rug was so mercilessly pulled.

The Rekt Database Chronicles

According to De.Fi’s Rekt Database, April witnessed over 50 distinct crypto disasters, including scams, hacks, and the infamous rug pulls. A significant chunk of these calamities was attributed to memecoins—showing once and for all that silly memes can indeed be a gateway to serious losses. Case in point: the Polygon-based Ovix protocol, which lost $2 million in a flash loan attack on April 28.

Staying Vigilant

As the crypto space continues to grow, so too does the variety of threats lurking within. Investors and project developers alike must remain vigilant, keeping one eye on security measures and the other on ensuring that their hard-earned coins don’t find themselves on some hacker’s grocery list.