A $173 million loss has been recorded during the November craze in the cryptocurrency market, indicating a turbulent time in the world of digital assets. This number, released by blockchain and smart contract security firm CertiK, represents an unsettling development in the world of online banking.
Among the startling total are two critical events that account for an astounding 91% of the total losses. November 2023 is already the fourth-highest month for losses this year, according to CertiK’s study, underscoring the gravity of the problem.
The main cause of this large increase in losses is the recent cyberattack that targeted Poloniex, a well-known cryptocurrency exchange. Hackers stole an astounding $114 million by taking advantage of flaws in the exchange’s “hot wallets,” which left a trail of 357 transactions behind.
Arkham Data kept a careful eye on the incident and tracked the flow of money, locating an Ethereum wallet that is now being linked to the “Poloniex hacker” who carried out the massive crime.
The advisory from CertiK, which was published on X, emphasized the seriousness of the issue by restating the $173 million in damages, which were mostly caused by two significant occurrences. It also restated the alarming reality that November now holds the fourth-highest rank among all months lost so far this year.
The security company also revealed information on another notable incident, a phishing scam that caused a separate loss of almost $27 million.
In contrast, October’s verified losses from scams, hacks, and vulnerabilities came in far smaller amounts—roughly $32.2 million—than November’s alarming totals.
The disclosure that more than $7 billion in bitcoin has been unlawfully laundered via cross-chain crime is a different but no less alarming trend. The suspected participation of North Korea’s Lazarus Group—which has been connected to the loss of almost $900 million between July 2022 and July of this year—is a major cause for worry.
Decentralized exchanges (DEXs), cross-chain bridges, and coin swap services have reportedly helped transfer $7 billion in criminal cash, according to data from the blockchain analytics company Elliptic. This has led to serious worries about the security and integrity of the cryptocurrency ecosystem.
The shocking losses and illegal activity that were made public in November serve as a clear reminder of the risks and weaknesses present in the world of digital assets, and investors and regulatory agencies are urged to step up their efforts to strengthen security protocols and fight fraud in the cryptocurrency space.
