The cryptocurrency space experienced a tumultuous November with a surge in illegal activity that culminated in huge financial losses. Blockchain security firm Certik reports that November 2023 has become the most "disruptive" month of the year for crypto-related crime.
The total loss is about 3$6.3 billion, highlighting the challenges facing the crypto industry. The surge in criminal activity has once again highlighted the urgent need for enhanced security measures in the digital asset space.
The main reason for this unfortunate record is a series of exploits and attacks targeting different platforms. Of these, the damage caused by the exploit is as high as 3$16.4 billion, while the flash loan attack caused $45.5 million in damages. In addition, different export scams resulted in the theft of $1.1 million.
Specifically, the biggest vulnerabilities of the month involved two major platforms: Poloniex and HTX Heco Bridge, with the former losing 1$31.4 billion, with the latter losing $1$13.3 billion. These events are notable for their scale and impact on trust in the crypto ecosystem as a whole.
In addition, one victim lost $27 million in a phishing attack, highlighting the sophistication and severity of cybercriminals targeting individuals.
Flash loan attacks, especially the $45 million KyberSwap attack, were responsible for almost all of these losses in November. These attacks, which exploit vulnerabilities in decentralized finance (DeFi) protocols, are becoming increasingly common, posing a significant challenge to the security of these platforms.
The total loss in November 2023 surpassed the 3A historical record of $2.9 billion, primarily attributed to the $200 million mixin cyberattack.
As of the end of November, cumulative losses from exploits, exit scams, and flash loan attacks in 2023 were around $1.7 billion, according to Certik. This figure represents only 54% of total losses in 2022, with similar incidents costing $3.7 billion in 2022.
In comparison, losses in 2021 were also as high as $1.7 billion, according to Certik's analysis. These statistics highlight the increasing trend of attacks and vulnerabilities within the cryptocurrency space, highlighting the increasing need for more effective security protocols and measures to protect investors' assets.
In response to these concerns, some countries are taking positive measures. For example, in August, Dubai announced the launch of a new licensing program for crypto service providers. Dubai's Virtual Assets Regulatory Authority (VARA) has strengthened investor protections in the region with new guidelines for the marketing, advertising, and promotion of cryptocurrencies, as reported by Bitcoinist.