Crypto Security Faces New Challenges Despite Lower Losses

Crypto Losses Drop but Still a Big Concern

In May, the crypto world lost around $244 million to hacks and exploits. This number is still very high. However, it’s lower than the $402 million lost in April. That’s a 39% drop, which gives some hope that things might be slowing down—for now. But the problem isn’t going away. Hackers are still active and finding new ways to target protocols.

Security firm PeckShield shared that many recent attacks were different from the usual. Hackers are now trying to frame victims. They want to confuse investigators and shift the blame. This makes it harder to track the real criminals. In some cases, innocent users get treated as suspects. It adds more stress to an already painful situation for those who lost funds.

Source: X

Yu Xian, co-founder of the security firm SlowMist, said victims should consider sharing their wallet addresses after being attacked. This can help investigators. He advised showing them publicly or in a censored format. His warning is clear: hackers are using smart tricks to hide their tracks and make others look guilty.

Cetus Protocol Faced the Biggest Loss

The largest attack in May happened to Cetus Protocol, a decentralized exchange on the Sui blockchain. The platform lost around $223 million in a single exploit. After the attack, Cetus worked with Sui validators. They managed to freeze about $162 million of the stolen funds. That’s roughly 71% of the total loss.

Source: X

Cetus got approval from the Sui validators to reclaim the frozen assets. Now the team is focused on recovery. They are upgrading their smart contracts, restoring liquidity, and preparing to relaunch the platform. This will take time, but it’s a start.

Source: X

Cork Protocol, based on Ethereum, was another major victim. Hackers targeted its Wrapped Staked Ethereum (wstETH) and Wrapped Ethereum (weETH) markets. They stole nearly $12 million. Other parts of the platform were not affected. Still, Cork paused all operations to carry out a full audit and ensure safety.

PeckShield’s report also brought up concerns about North Korea-linked hackers. One incident involved a $5.2 million theft from a single crypto trader. These kinds of attacks are serious. They often involve skilled teams and large sums. The return of these actors is alarming. The last big case linked to them was in February. That attack hit Bybit and caused a loss of $1.5 billion.

While large attacks grab headlines, smaller ones are also hurting the industry. One example is the exploit of Mobius Token contracts on the BNB Chain. The attacker used just one smart contract. They drained 28.5 million MBU tokens, worth about $2.2 million.

These smaller incidents may not make the news as often. But they still harm projects and users. They also show how simple tools can still do a lot of damage if not secured properly.

Tornado Cash Still Used to Hide Stolen Funds

Tornado Cash continues to be a favorite tool for laundering money. It helps hide the source of stolen crypto. Even though regulators have been watching it closely, criminals still rely on it. This shows how hard it is to track stolen assets once they enter mixing tools.

With hackers trying to frame victims, the community needs to stay alert. Sharing wallet information after an attack may feel uncomfortable. But it can help prevent misunderstandings. It can also assist investigators in finding the real attackers faster.

The industry is constantly evolving. Hackers are becoming more creative. Defenders must keep up. Transparency, communication, and updated security tools are now more important than ever.

Final Thoughts

May's decline in total losses is a small win. But the shift in hacker behavior shows deeper problems. Framing victims is a new low. The crypto space needs stronger systems and more cooperation between users, platforms, and security experts. This isn’t just about money. It’s about trust, safety, and the future of crypto.