The month of May was marked by significant losses in the cryptocurrency sector, with a total of $42.6 million lost due to various malicious activities. According to CertiK, a blockchain security firm, these losses resulted from exploits, flash loans, and exit scams. Despite these significant losses, the sector saw a recovery of approximately $96.2 million, providing some respite from the economic impact.

Flash loan attacks were the most significant contributor to these losses, totaling around $20.7 million. Sonne Finance was the hardest hit, losing $20 million, followed by TLN Protocol with losses of $746,000. GPU and Saturn Token also suffered losses, totaling $32,394 and $8,343, respectively.

Exploits were another significant contributor to the losses, accounting for approximately $19.7 million. Gala Games suffered the most substantial loss at $21.6 million, followed by AlexLab at $4.3 million, Pump Fun at $1.9 million, (link unavailable) at $1.28 million, and Orion at $947,000.

Exit scams, although less common, still contributed around $1.8 million to the losses. Trees On Sol lost $1.11 million, Pii Park $490,000, Novamind $123,019, and Arbalest $91,520.

Interestingly, flash loan attacks have consistently led to 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.

Meanwhile, 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.

The year 2024 has seen a continuation of crypto hacks and rug pulls, with over $473 million worth of cryptocurrency lost across 108 incidents, according to security service provider Immunefi. The decentralized finance (DeFi) market remains the primary target for hackers, while centralized finance companies did not experience any attacks in 2024.

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.

The persistence of crypto hacks and exploits is a continuing problem in the sector. Recently, DMM Bitcoin, a Japanese cryptocurrency exchange, reported losing 48 billion yen ($305 million) of Bitcoin (BTC) due to a hack. The exchange stated that 4,502.9 BTC "leaked" out of the exchange.

These incidents highlight the ongoing vulnerabilities in the cryptocurrency sector, emphasizing the need for increased security measures to protect against these malicious activities. Despite the losses, the sector remains resilient, with a focus on innovation and growth.