Crypto Losses Surge 1,100% in April Amid Fifth-Largest Hack in History
The cryptocurrency market witnessed a staggering spike in losses during April, with blockchain security firm CertiK reporting a 1,163% increase compared to March. A single heist involving an elderly U.S. individual accounted for the majority of the $364 million lost to exploits, hacks, and scams. This incident now ranks as the fifth-largest crypto hack ever recorded.
April’s Alarming Crypto Losses: A Deep Dive
CertiK’s April 30 X post revealed that the total crypto losses for the month reached $364 million—a dramatic jump from the $28.8 million recorded in March. While white hat exploiters managed to recover approximately $18.2 million from protocols like KiloEx, Loopscale, and ZKsync, the damage was already significant.
The $330 Million Bitcoin Heist: Social Engineering at Its Worst
The most devastating attack in April involved an elderly U.S. victim who lost 3,520 Bitcoin (BTC), valued at $330.7 million. The hacker employed advanced social engineering tactics to gain access to the victim’s wallet on April 30. This single incident alone accounted for over 90% of the month’s total losses.
Excluding this attack, April’s crypto losses still rose by 21% to $34 million compared to March. The primary culprits behind these losses were:
- Phishing scams (bolstered by the Bitcoin heist)
- Social engineering attacks
- Access control breaches
- Price manipulation exploits
Historical Context: How Does April Compare?
February remains the worst month of the year so far, with $1.53 billion lost—primarily due to the $1.4 billion Bybit hack orchestrated by North Korea’s Lazarus Group. This attack still holds the record for the largest crypto hack in history.
Meanwhile, December 2024 saw the lowest losses at $28.6 million, marking a downward trend from November ($63.8 million) and October ($115.8 million).
White Hat Efforts: Hackers Return $18 Million
Despite the grim figures, there were some positive developments. Over $18 million was returned to victims in April, showcasing the growing influence of ethical hackers in the crypto space.
KiloEx: Full Recovery After $7.5M Exploit
Decentralized exchange KiloEx suspended operations following a $7.5 million exploit. However, the exploiter returned all stolen funds just four days after the attack, demonstrating rare accountability.
ZKsync Recovers $5M in Stolen Tokens
The ZKsync Association successfully recovered $5 million worth of tokens stolen during an April 15 security incident involving its airdrop distribution contract.
Loopscale Recovers Half of $5.7M Loss
DeFi protocol Loopscale managed to retrieve half of the $5.7 million stolen during an exploit on April 26. The attack involved manipulating the protocol’s RateX PT token pricing functions.
Key Takeaways for Crypto Users
The April surge in crypto losses highlights several critical issues:
- Social engineering remains a dominant threat—even experienced users can fall victim.
- DeFi protocols continue to be prime targets due to smart contract vulnerabilities.
- White hat hackers are becoming more active, helping recover stolen funds.
Conclusion: Staying Safe in a Risky Landscape
The crypto industry must prioritize security education, especially for high-net-worth individuals. While white hat efforts are commendable, prevention remains the best defense against escalating threats.
Actionable Steps:
- Enable multi-factor authentication (MFA) on all crypto accounts.
- Use hardware wallets for large holdings.
- Verify all communications to avoid phishing scams.
As the market evolves, so do the threats—making vigilance more crucial than ever.
