March 27, 2024
CertiK's Report Reveals $700M Loss
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CertiK’s Q3 Report Reveals Alarming $699 Million Crypto Security Losses

The third quarter of 2023 has proven to be the most financially detrimental period of the year, as reported by CertiK, a blockchain security firm. They revealed that nearly $700 million in digital assets had been lost due to various security incidents during this quarter.

In their quarterly report, CertiK shed light on a staggering 184 security incidents occurring in the months of July, August, and September 2023. These incidents resulted in losses exceeding $699 million, surpassing the losses of $320 million in the first quarter and $313 million in the second quarter of the year.

The most significant contributor to these losses were private key compromises, responsible for siphoning over $204 million across 14 incidents. One notable case highlighted in the report was the Multichain incident, where private keys were solely controlled by the project’s CEO, resulting in a $125 million loss. This incident underscored the vulnerability associated with centralized control of private keys for businesses, ultimately leading to the cessation of Multichain’s operations. Apart from private key exploits, exit scams and oracle manipulation also played a significant role in the quarter’s losses. The report pointed out a total of 93 exit scam incidents, causing a loss of more than $55 million in digital assets. Additionally, 38 oracle manipulation incidents led to losses exceeding $16 million in the cryptosphere.

Concerning crypto hacks, the cross-chain protocol Mixin Network exploit stood out as the most impactful incident, making September the most significant month for crypto exploits in 2023. On September 25, Mixin Network suspended all withdrawals and deposits in response to the incident, confirming later that $200 million worth of assets had been drained from its mainnet.

CertiK’s quarterly report also emphasized that North Korea’s state-affiliated hacking group, Lazarus, remained a dominant threat actor during the quarter. The group was accountable for at least $291 million in confirmed losses in 2023 and continued its malicious activities into the third quarter.

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