TLDR
- February was a brutal month for the crypto industry. Bybit was taken by the Lazarus Group for $1.5 billion.
- March was much slower, with a more modest $28 million in losses reported, according to CertiK.
The tariff news has got all financial markets bleeding. Hard. Need some good news? We’ve got some! After a rough February with staggering losses of $1.5 billion due to scams and exploits (almost all of which came from the Bybit hack), the crypto world caught a much-needed break in March.
According to blockchain security firm CertiK, losses to hacks, scams, and exploits dropped to a more reasonable $28.8 million. And yeah, we can’t believe we just typed those words, either. But that’s the world we live in.
If you’re a crypto user, this downturn in losses might bring a sigh of relief. Unfortunately, that doesn’t mean the industry is suddenly free of risks. Keep your investments safe. Stay informed about evolving threats and exploits. It’s more important than ever. Let’s get after it.
What Happened in Crypto Security in March?
Compared to the unfortunate events of February, March was a comparatively quiet month. Yet, some losses still occurred, mainly due to code vulnerabilities and wallet compromises.
Here are CertiK’s figures from X:
By The Numbers
- March losses reached $28.8 million, a major drop from the previous month’s shocking $1.5 billion in losses.
- Code vulnerabilities were the leading cause of financial damage, responsible for more than $14 million in losses.
- Wallet compromises accounted for over $8 million being stolen.
Notable Exploits in March
The $13 million smart contract exploit targeting decentralized lending protocol Abracadabra.money stands out as the single largest exploit of March.
On March 25, hackers exploited vulnerabilities in the protocol’s code (this is what we’re referring to when we mention smart contract risk), siphoning off funds and leaving the project to patch holes and recover.
The incident is a brutal reminder to crypto users and developers of the risks tied to smart contracts and the importance of thorough security audits.
Why Are Crypto Hacks Occurring Less Frequently?
While CertiK didn’t highlight specific reasons behind March’s drop in losses, several broader factors could explain this trend.
1. Increased Security Awareness
After February’s alarmingly high losses, the crypto community likely doubled down on improving security measures. Developers have begun proactively addressing vulnerabilities in smart contracts, and wallet providers are urging users to adopt better cybersecurity practices.
2. Heightened Audits and Scrutiny
Beyond individual efforts, projects in the crypto space have faced mounting pressure to conduct stringent code audits and implement security patches. The collective attention may have played a role in minimizing losses during March.
3. User Vigilance
Users are always the first line of defense when it comes to crypto. A better-informed user base could also be contributing to the decline.
With growing awareness of common scams and schemes, users may be less inclined to fall for phishing attempts or shady-looking protocols.
4. The Lazarus Group Is on Vacation?
Hey. It could happen.
They could be taking a nice little holiday with all the ETH they’ve stolen. But the most likely scenario is that they’re laying low while plotting their next move and actively looking for a juicy target.
What Does This Mean for Investors?
At the end of the day? Nothing. A light hacker month doesn’t mean we get to take it easy and start dropping the ball on security.
However, the decrease in losses is encouraging, but make no mistake -–- crypto investments remain inherently risky. Here’s what you need to know (and do) to protect yourself and your assets.
1. Beware of Exploit Risks
Even though losses have dropped for now, incidents like the Abracadabra.money hack show that vulnerabilities in protocols remain a substantial threat. If a decentralized app (dApp) or project you’re considering investing in hasn’t undergone rigorous security auditing, tread cautiously.
And if it has, tread cautiously anyway. Auditing companies are run by human beings. None of us are infallible.
2. Secure Your Wallets
Wallet compromises accounted for $8 million in March losses alone. Use wallets with proper security features, enable two-factor authentication (2FA) when possible, and never share your private keys with anyone.
3. Stay Updated
Threat landscapes in blockchain and crypto can change overnight. Follow reliable blockchain security platforms (such as CertiK) to stay informed about emerging risks and vulnerabilities.
The Road Ahead for Crypto Security
The drop in losses during March is undoubtedly a step in the right direction, but it’s far from a final victory against malicious actors in the crypto space.
Crypto users, developers, and experts must continue collaborating to strengthen the ecosystem’s defenses. The Lazarus Group always seems to be one step ahead of everyone else…
Keeping pace with newer types of exploits, educating users, and proactive measures against vulnerabilities will determine how successfully the sector can fend off future attacks.
Stay Ready For the Next Storm
No one in Florida says, “Well, glad that’s over. We never have to worry about that ever again,” after a hurricane blows through because another will be coming on shore eventually. Probably sooner rather than later.
March’s numbers mean you need to double down on security practices. If codes can be exploited, wallets can be compromised, and phishing scams can trick even the savviest, the responsibility to protect your assets ultimately comes down to you.
Stay safe out there guys.
