Cryptocurrency markets are always at risk of hacking, fraud and significant losses. Hack reports this week show that many platforms have security vulnerabilities. These issues also raise concerns about rules and safety in the industry.
Dexx Hack Affects Over 8,620 Solana Wallets
The DEXX trading platform, intended for trading meme coins, was hacked on November 16. The attack occurred due to a private key leak aimed at stealing over 8,620 Solana wallets and siphoning off $30 million. In the same case, at least 900 users were affected, among which one person lost more than a million dollars.
However, the platform has engaged in mitigation measures such as: tracking hackers’ wallets and negotiating the return of funds, but the outcome is often unpredictable.
Pump Science Wallet Hack: Developer Negligence Triggers Token Fraud
Pump Science, a decentralized science (DeSci) platform based on Solana, shared news of the breach, resulting from the recklessness of one of its developers. The attacker used a leaked private key to intentionally create fake URO and RIF tokens in the system. The fake tokens circulated in the market, erasing the reputation and trust of the project.
Pump Science has since explained that all tokens produced by the said wallet since its compromise were fake. The team also warned users to stay away from fake accounts while trying to contain the losses suffered 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. Researchers say he manipulated the token prices by using his status to take control of them in order to drive up prices and sell them for a profit of $23 million.
The main projects linked to these allegations include: $SUPER: $11.45M, $ERN: $4.65M, $PMON: $1.72M, $STAK: $1.31M and $AIOZ: 1M $
This has once again made many people think about what kind of ethical practices exist in crypto marketing.
November Crypto Losses: A $71 Million Blow for Defi
Analyzed by ImmuneFi, 26 hacking and fraud cases in November resulted in losses of $71 million. This figure is down 79% from that recorded in November 2023, when $343 million was withdrawn from the accounts. However, challenges persist, especially for DeFi platforms, which account for: 100% of incidents and losses, $70.99 million for 24 hacks and $25,300 for 2 rug pulls.
Major incidents included: Thala Labs: $25.5M and DEXX: $21M
The BNB chain was the most attacked blockchain with 14 attacks and a total loss of 46.7%; Ethereum suffered a 30% loss.
Conclusion: Creating a Safer Crypto Space
This week’s events show that there is a need to address security breaches and other bad practices taking place in the crypto industry. Although the total amount of losses has decreased compared to last year, cases such as DEXX and Pump Science clearly show the importance of strict technical security measures.
Similarly, the case of MrBeast suggests that the FCA should pay more attention to influencer financial promotions.
Looking ahead to the final quarter of 2024, the key to change and growth in the crypto community is trust, transparency and security to make the ecosystem stronger in 2025.
