Cryptocurrency Sector Loses $42.6 Million in May, Recovers $96.2 Million

According to CryptoPotato, blockchain security firm CertiK reported that the cryptocurrency sector suffered losses of $42.6 million in May due to exploits, flash loans, and exit scams.

However, the sector managed to recover approximately $96.2 million, mitigating some of the economic impact. Flash loan attacks were the primary cause of these losses, accounting for around $20.7 million. Sonne Finance was the hardest hit, losing $20 million, followed by TLN Protocol, which lost $746,000. GPU and Saturn Token also experienced losses, amounting to $32,394 and $8,343 respectively.

Exploits also had a significant impact on the sector, leading to losses of about $19.7 million. Gala Games suffered the most significant loss of $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. Exit scams, although less common, contributed approximately $1.8 million to the losses. Among these, Trees On Sol lost $1.11 million, Pii Park $490,000, Novamind $123,019, and Arbalest $91,520.

Interestingly, flash loan attacks have consistently caused significant losses in odd-numbered months throughout the year. January, March, and May saw losses of $15.3 million, $21.9 million, and $20.7 million, respectively. In contrast, losses in February and April were less than $150,000 each. February experienced the most severe loss overall due to exit scams, totaling $58.3 million, with less than 10% of this total recorded in other months.

Last year, over $2 billion was lost to hacks and exploits, about half the total from the previous year. In May 2024, Ethereum and BNB Chain were the most targeted chains, collectively representing 62% of the total losses across targeted chains.

Crypto hacks and exploits continue to be a significant problem. For instance, DMM Bitcoin, a Japanese cryptocurrency exchange, recently reported losing 48 billion yen ($305 million) of Bitcoin (BTC) due to a hack.