The cryptocurrency sector faced significant challenges in May, with exploits, flash loans, and exit scams costing the industry a total of $42.6 million. Flash loan attacks emerged as a major contributor to losses, with a staggering $20.7 million lost due to such attacks. Sonne Finance was the hardest hit, losing $20 million, followed by TLN Protocol with a loss of $746,000. GPU and Saturn Token also suffered losses, totaling $32,394 and $8,343, respectively.
Exploits also played a significant role in the losses, accounting for approximately $19.7 million. Gala Games suffered the most substantial loss at $21.6 million, followed by AlexLab at $4.3 million, Pump Fun at $1.9 million, GNUS.ai at $1.28 million, and Orion at $947,000.
While less common, exit scams still added to the overall losses, amounting to around $1.8 million. Trees On Sol lost $1.11 million, Pii Park $490,000, Novamind $123,019, and Arbalest $91,520. Notably, the pattern of flash loan attacks leading to significant losses in odd-numbered months throughout the year is a concerning trend for the sector.
In the wider scope of 2024, security service provider Immunefi reported that over $473 million worth of cryptocurrency has been lost to hacks and rug pulls across 108 incidents. The DeFi market remains a primary target for hackers, with centralized finance companies surprisingly avoiding any attacks in 2024. Last year, the industry lost over $2 billion to hacks and exploits, highlighting the ongoing security challenges.
Even as the sector seeks to address vulnerabilities, recent incidents like the hack at DMM Bitcoin serve as a sobering reminder of the risks involved. The Japanese cryptocurrency exchange reported a loss of 48 billion yen ($305 million) of Bitcoin due to a hack, underscoring the need for continued vigilance and security measures in the industry.
Overall, the cryptocurrency sector faces persistent threats and challenges, with flash loan attacks, exploits, and exit scams contributing to significant economic losses. While efforts are being made to enhance security and resilience, the industry must remain proactive in addressing vulnerabilities and mitigating risks to safeguard assets and investor confidence.