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Major Hacks Drain $347 Million from Crypto in May 2024

Highlights:

  • In May 2024, hackers stole a colossal $347.3 million across various cryptocurrency platforms.
  • DMM Bitcoin faced the largest breach, losing $305 million due to unauthorized BTC transactions.
  • Recovery efforts by Gala Games recaptured most of the $23 million lost in a security breach.

Blockchain research and security firm CertiK reported a devastating month for the cryptocurrency sector, with $347.3 million lost to hacks, flash loan attacks, and exit scams in May 2024. The losses were attributed to several major incidents affecting various enterprises, highlighting significant vulnerabilities within the industry.

Significant Losses in May

CertiK’s monthly report details substantial losses across different attack types. The breakdown of the $347.3 million lost includes the following:

  • Exploits: $324.7 million
  • Flash Loans: $20.7 million
  • Exit Scams: $1.8 million

Most of the losses were due to various exploits, with the DMM Bitcoin exchange hack being the most significant contributor.

Top Five Hacks of May

The five major hacks in May resulted in significant financial damage to the affected platforms.

Devastating Blow to DMM Bitcoin

The most recent and significant breach occurred at the DMM Bitcoin exchange, where hackers executed a theft of approximately $305 million worth of Bitcoin on May 31. This hack alone comprised the bulk of the month’s losses. 

The breach was detected promptly at 1:26 p.m. local time, leading to immediate security measures, including suspending withdrawals and an in-depth review of account activities. DMM Bitcoin has assured its users that full compensation for the lost funds will be forthcoming.

Gala Games Recovers After Hack

Another major incident involved Gala Games, where $23 million in user assets were stolen due to internal security oversights. Following the breach, the company’s CEO confirmed that most of the stolen assets were recovered, according to Crypto2Community’s report. This was with the assistance of law enforcement and security partners, underscoring the importance of robust security frameworks in safeguarding user funds.

Sonne Finance Suffers Flash Loan Exploit

Sonne Finance, a notable entity in the DeFi sector, reported a loss of $21 million due to a flash loan exploit. This attack exploited vulnerabilities in the platform’s smart contract design, allowing the attackers to manipulate asset prices and withdraw funds. Efforts are underway to amend the security flaws and recuperate the losses.

Alex Lab and Pump.fun Face Security Breaches

Further incidents include a $4.4 million loss by Alex Labs and a $2 million theft from Pump.fun. Both platforms are now enhancing their security protocols to prevent future breaches.

These breaches have prompted a widespread industry response, with affected platforms enhancing their security measures to prevent future incidents. The crypto community is also becoming more vigilant, recognizing the importance of security in maintaining trust and stability within the market.

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