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November Crypto Hack, Phishing, & Rug Pull Surge Cost Users $356 Million

2 mins
Updated by Ali M.
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In Brief

  • In November 2023, the total loss from crypto security incidents skyrocketed to $356.53 million, a 6.9-fold increase compared to October losses.
  • Major security breaches at Poloniex and HTX played a significant role in November's crypto losses, jointly accounting for 66% of the month's total.
  • The Poloniex hack alone resulted in approximately $117 million in losses, with the incident likely involving a sophisticated private key compromise.
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In an end-of-year surge in cybercrime, the crypto industry faced an alarming $356.53 million loss due to hacks, phishing scams, and rug pulls in November 2023.

This staggering amount, as reported by Beosin EagleEye, marks a 6.9-fold increase from the losses in October, spotlighting the escalating security challenges in the digital currency sector.

Crypto Hacks on the Rise Once Again

Central to this financial upheaval were two major security breaches, each exceeding $100 million. The crypto exchange Poloniex, a notable figure in the sector, suffered a profound breach, losing approximately $126 million. This incident, along with a similar attack on HTX and its associated HECO Bridge, accounted for 66% of the total losses from hacker attacks in November.

These significant breaches were both linked to enterprises under Justin Sun’s ownership. They underscore the growing sophistication and scale of cyberattacks targeting major cryptocurrency platforms.

The Poloniex’s hack likely involved a complex private key compromise. This is part of a broader trend of increased phishing incidents. Hackers targeted several individual accounts, each for over $1 million.

Other crypto crime vectors also witnessed a notable rise, with multiple cases involving over $100 million. They encompassed various types of fraud and money laundering.

Read more: Top 5 Flaws in Crypto Security and How To Avoid Them

Stay Vigilant, Stay Secure

The total loss from exchange-based (CEX and DEX) security incidents alone amounted to $215 million. Such figures call for an urgent reevaluation of security practices within the industry.

It is recommended that large projects enhance their private key management, conduct regular security audits, establish comprehensive emergency plans, and also improve security awareness training for their employees.

Moreover, the increase in phishing scams highlights the need for users to securely store private keys, carefully review transactions before signing, and remain vigilant against suspicious content.

ImmuneFi data claims that losses due to crypto hacks and fraud have reached $1.75 billion.

Crypto losses as of December 1, 2023. Source: ImmuneFi
Crypto losses as of December 1, 2023. Source: ImmuneFi

Read more: A Complete Guide to P2P Decentralized Exchanges (DEXs)

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

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Kyle Baird
Kyle migrated from the East Coast USA to South-East Asia after graduating from Pennsylvania's East Stroudsburg University with a Bachelor of Science degree in 2010. Following in the footsteps of his grandfather, Kyle got his start buying stocks and precious metals in his teens. This sparked his interest in learning and writing about cryptocurrencies. He started as a copywriter for Bitcoinist in 2016 before taking on an editor's role at BeInCrypto at the beginning of 2018.
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