Cryptocurrency markets are still at risk from hacks, fraud and major losses. This week’s hack reports show that many platforms have security weaknesses. These issues also raise concerns about regulations and safety in the sector.
Dexx hack affects over 8,620 Solana wallets
The trading platform DEXX, aimed at trading meme coins, was hacked on November 16. The attack was sparked by a private key leak to steal more than 8,620 Solana wallets and siphon $30 million. In the same case, at least 900 users were affected, with one person losing more than a million dollars.
However, the platform has taken mitigation measures such as; tracking the hacker’s wallet and negotiating the return of the money, but the outcome is often unpredictable.
Pump Science Wallet Hack: Developer Negligence Leads to Token Fraud
Pump Science, a Solana-based decentralized science platform (DeSci), shared news of the breach, which resulted from the recklessness of one of its developers. The attacker used a leaked private key to voluntarily insert fake URO and RIF tokens into the system. The fake tokens circulated on the market and destroyed the reputation and trust of the project.
Pump Science has since explained that all tokens produced by the said wallet since the compromise are fake. The team has also warned users to stay away from fake accounts while limiting the losses incurred so far.
MrBeast is accused of crypto manipulation and insider trading
A popular YouTuber MrBeast (Jimmy Donaldson) abused his 31.2 million subscribers by using forums to promote pump-and-dump schemes. Investigators allege he manipulated token prices by using his status to gain control of them, pumping up the prices and dumping them for a profit of $23 million.
Key projects related to these allegations include: $SUPER: $11.45 million, $ERN: $4.65 million, $PMON: $1.72 million, $STAK: $1.31 million and $AIOZ: $1 million
This has once again led many people to think about the kind of ethical practices that exist in crypto marketing.
Crypto Losses in November: A $71 Million Hit to Defi
Analyzed by ImmuneFi, 26 hacking and fraud cases led to $71 million in losses in November. This is down 79% from the record high in November 2023, when $343 million was withdrawn from accounts. However, challenges remain, especially for DeFi platforms, which were responsible for: 100% of incidents and losses, $70.99 million from 24 hacks and $25,300 from two carpet attacks
Major incidents included: Thala Labs: $25.5 million and DEXX: $21 million
The BNB Chain was the most attacked blockchain with 14 attacks and a total loss worth 46.7%; Ethereum took a 30% loss.
Conclusion: creating a more secure crypto space
This week’s events show that attention needs to be paid to security holes and other malpractices taking place in the crypto industry. Although the total amount of damage has decreased compared to last year, things like DEXX and Pump Science clearly indicate the importance of strong technical security measures.
Similarly, MrBeast’s case suggests that the FCA should pay more attention to influencers’ financial promotions.
Looking ahead to the last quarter of 2024, the key to change and growth of the crypto community is trust, transparency and security to make the ecosystem stronger in 2025.
Credit : coinpedia.org
