Quantstamp Reports DeFi Losses of 39 Million Dollars Due to Malicious Activities in January 2024

Crypto News- In a recent disclosure from Quantstamp, a pioneering DeFi security startup, an alarming $38.9 million has fallen prey to security breaches within the burgeoning ecosystem.

Perpetrators employing sophisticated tactics like smart contract hacks, key compromises, and scams have persistently orchestrated attacks, leaving a trail of financial wreckage.

Quantstamp Reports DeFi Losses of 39 Million Dollars Due to Malicious Activities in January 2024

The initial blow struck Radiant Capital, a multi-chain lending protocol, losing 1,900 ETH (approximately $4.5 million). The attacker exploited a timing window and a known rounding issue in the Compound / Aave codebase, leaving the platform and its users in shock.

Soon after, the liquidity management protocol Gamma suffered a devastating attack, hemorrhaging around $6.18 million. Despite having multiple deposit protections, a misconfiguration in the price movement threshold provided attackers an opportunity to manipulate prices and mint a significant number of LP tokens.

DeFi’s January 2024 Turmoil: Quantstamp Unveils 38.9 Million Dollars Loss Amid Surge in Malicious Attacks

Wise Lending, a prominent player, fell victim to a flash loan attack, resulting in a substantial loss of at least $460,000. The onslaught continued with Socket, an interoperability protocol, succumbing to exploitation of a vulnerability in a newly added module, allowing attackers to pilfer approximately $3.3 million from users.

Goledo Finance, a lending protocol within the Conflux ecosystem, was the next target, suffering an exploitation that led to a loss of 7.9 million CFX, equivalent to roughly $1.7 million. Preliminary investigations pointed to yet another flash loan attack, underscoring the persistent threat faced by DeFi platforms.