The month of May witnessed significant setbacks in the cryptocurrency realm, with losses amounting to a noteworthy $42.6 million due to various malicious activities such as hacks, scams, and exploits. Gala Games encountered the most severe blow, facing a staggering $21.6 million loss as a result of exploits. Following closely, Sonne Finance fell victim to a flash loan attack, losing a substantial sum of $20 million. CertiK, a trusted entity in the crypto industry, confirmed that these incidents collectively contributed to the overall cryptocurrency losses in May, surpassing the previous month's figures of $41.6 million. According to CertiK's analysis, the breakdown of losses in May reveals that exit scams accounted for $1.8 million, flash loans drained $20.7 million, and exploits siphoned off $19.7 million from the cryptocurrency ecosystem. The impact of these incidents is evident in the figures disclosed by CertiK. Notably, Gala Games suffered the most significant setback with a $21.6 million scam, leading the list of exploited platforms. Sonne Finance closely followed with a $20 million loss, emphasizing the severity of the flash loan attack it experienced. Other platforms affected by exit scams in May include Trees On Sol with a $1.11 million loss, Pii Park with $490,000, Novamind with $123,019, and Arbalest with $91,520. A peculiar trend observed throughout the year is the prevalence of flash loan attacks in odd-numbered months. Noteworthy financial losses were recorded in January, March, and May, amounting to $15.3 million, $21.9 million, and $20.7 million, respectively. In contrast to these unfortunate events, the cryptocurrency landscape continues to face challenges in combating fraudulent activities and protecting investors' assets.
Cryptocurrency Losses in May 2022

by Giorgi Kostiuk
2 years ago

Other news
XRP Community Divided Over Allegations of Market Manipulation

The XRP community is divided over allegations of market manipulation, with Arthur claiming price surges before US market openings and Robert W arguing it's typical market behavior.

TD Cowen Warns CLARITY Act May Not Pass Until 2027

TD Cowen warns that the CLARITY Act may not pass until 2027, with potential implementation in 2029, raising concerns among lawmakers about the timeline and implications for crypto regulation.

Bitcoin Shows Signs of Recovery as Coinbase Premium Gap Turns Positive

The Coinbase Premium Gap has shifted to positive territory after nearly 10 weeks of negative readings, indicating a potential return of US demand for Bitcoin.

Whales Gather Ethereum While Prices Stay Low.

Whales are actively accumulating Ethereum from exchanges, showing growing confidence in the market.

Bitcoin Price Stabilizes as Long-Term Investors Defend Positions

Bitcoin's price remains stable around $70,000 as long-term investors defend their positions.

Institutional Demand Buffers Bitcoin Price Amid Whale Activity

Despite significant whale distribution, institutional demand has buffered Bitcoin's price.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter