Crypto Investors Lose $310 Million in August 2024
Highlights:
- Crypto investors suffered a $310.94 million loss in August 2024, marking the second-largest loss in the year.
- Major incidents included a $238 million BTC phishing scam and a $55 million loss linked to a compromised wallet.
- Despite the substantial loss, the market recovered only $10.3 million, highlighting the vulnerability of digital assets.
The cryptocurrency market experienced a significant downturn in August 2024, with losses surpassing $310 million due to various hacks, scams, and exploits. According to data provided by the on-chain security firm CertiK Alert, this significant loss marks the second-largest monthly crypto loss of 2024, only surpassed by the $324.7 million theft recorded in May.
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Combining all the incidents in August we’ve confirmed ~$300.6m lost to exploits, hacks and scams after ~$10.3m was returned.
The amount is the second highest monthly loss so far in 2024.
Exit scams: ~$0.8m
Flash loans: ~$1.2m
Exploits: ~$308.8mMore… pic.twitter.com/6MLVenZsgj
— CertiK Alert (@CertiKAlert) August 31, 2024
Crypto Market Suffers Heavy Losses
In August alone, the crypto market experienced $308.8 million in theft, with additional losses of $0.8 million from exit scams and $1.2 million from flash loans. Despite the severity of these losses, only a modest $10.3 million of the stolen assets has been recovered. This recovery underscores the ongoing challenges and vulnerabilities within the cryptocurrency landscape.
Among the major incidents in August, a Bitcoin phishing scam compromised $238 million in crypto assets. Another significant breach involved a wallet address, 0xf28, which suffered a $55 million loss. Additionally, the Ronin Network experienced a $11.7 million loss, and the platform Vow lost over $1.2 million, further contributing to the month’s staggering total.
The most notable exploits during August 2024 include the Ronin Network, where attackers stole $11.7 million. Nexera lost $448.8k to a hack, and Convergence saw hackers compromise $210k worth of crypto assets. These incidents highlight the persistent risks and challenges plaguing the cryptocurrency market. Investors are facing substantial losses despite ongoing efforts to enhance security measures.
Australians Lose $122M to Crypto Scams
Recently, Australians lost a staggering $122 million to crypto scams over the past 12 months, with a significant portion of the victims being under 50 years old. The Australian Federal Police (AFP) revealed that nearly half of the $269 million lost to investment scams during this period involved cryptocurrency.
Australians reported losing at least $180 million of cryptocurrency in investment scams in just 12 months, with victims now more likely to be under the age of 50 years. https://t.co/H1PFHtop4q
— AFP (@AusFedPolice) August 27, 2024
The AFP highlighted a worrying trend as younger Australians increasingly fall prey to sophisticated scam tactics. About 60% of victims were under 50, a shift from the traditional older demographic. Scammers use advanced methods like “pig butchering” and deepfakes to deceive their targets.
Pig butchering involves scammers building fake relationships with victims over time, convincing them to invest in fraudulent platforms. Deepfakes, often impersonating celebrities or public figures, are also being used to lure victims into fake investments. The AFP, banks, and digital exchanges are working to combat these scams. They urge Australians to be cautious and report suspicious activities.
Mbappé Twitter Hack Triggers $1M Crypto Scam Loss
French football star Kylian Mbappé’s Twitter, now X, was hacked on Thursday morning. The incident promoted a fraudulent cryptocurrency named $MBAPPE, which has heightened concerns over digital security, particularly for high-profile individuals online.
French football star Kylian Mbappe's Twitter account was hacked and released the token MBAPPE, which has now been deleted. The market value of MBAPPE tokens surged to tens of millions in a few minutes and then quickly returned to zero. A user bought 2 SOL (about $286) and sold it…
— Wu Blockchain (@WuBlockchain) August 29, 2024
The hacker exploited Mbappé’s account to post suspicious tweets, leading users to believe the account had been compromised. Among the tweets were messages endorsing the $MBAPPE token created through Pump. Fun, a Solana-based memecoin deployer. The token experienced a brief surge in value before plummeting, leaving many investors with significant losses.
One investor, who transferred 7,156 SOL (around $1.03 million) into the $MBAPPE token, saw the investment’s value drop to just $9.2K in minutes, resulting in a massive loss. However, another individual turned an initial $286 SOL investment into $200,000. The incidents showcased the extreme volatility and risk associated with meme cryptocurrencies.
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Raymond Munene
Raymond Munene is a crypto content writer who contributes to Crypto2Community. With over three years of experience, he is interested in Bitcoin, Blockchain, and Technical Analysis. Focusing on daily market analysis, his research helps traders and investors alike. His particular interest in cryptocurrency and blockchain aids his audience.
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