Crypto’s security crisis deepens – 3 exploits rattle the market in 24 hours

In the past 24 hours alone, three different kinds of exploits shook the crypto community. 

Initially, Pirate Chain (ARRR), a private, zero-knowledge cryptocurrency whose transparent layer had been exploited. Of this, the Ironwood turnstile used for supply accounting became the main target.

This component appears to be responsible for tracking token supply as funds move between different layers of the network. And now the vulnerability may have compromised the accuracy of these accounting records, prompting developers to roll back the blockchain to how it was on the 14th of October.

As a step of safety measure, the team noted on X, 

All exchanges have been notified and are temporarily suspending deposits and withdrawals. 

Users have also been advised to avoid sending or receiving $ARRR and refrain from using their wallets until further notice.

The Gamdom multidollar hack

Next, the Gamdom exploit resulted in approximately $4.3 million in reported losses across multiple blockchain networks.

In this, around $2.2 million was stolen across EVM-compatible networks, including Ethereum [ETH], BNB Chain [BNB], Polygon, Arbitrum, and Optimism, while another $965,000 was taken on Solana [SOL]. The attacker also reportedly extracted $375,000 from TRON and $668,000 in Bitcoin [BTC].

Here, the transaction trail shows funds being moved through attacker-controlled wallets, swapped between tokens, bridged across chains, and routed through services such as THORChain and Hyperliquid.

That said, Gamdom initially reported detecting a potential disk failure on a server before discovering an unauthorized connection to an automation server, prompting further investigation. However, the exact attack method and final losses remain subject to confirmation.

What led Demex to shut down completely?

Lastly, Demex, a decentralized layer-2 cross-chain derivatives exchange and trading protocol, revealed its permanent shutdown. This followed the 25 September 2026 bridge exploit, which caused approximately $192,000 in losses.

Though the team will cover the shortfall, it will no longer operate the decentralized exchange safely amid cyberattacks and insufficient traction.

In fact, by the end of October, Demex plans to launch a withdrawal page where users can review their final balances, calculated using prices at the time the blockchain halted. For this, users will have 30 days to dispute settlement calculations, followed by a 90-day withdrawal window.

The scam pandemic is spreading

This comes as the total value hacked in 2026 has so far crossed $1.195 billion, according to DeFiLlama data.

Meanwhile, TRM Labs also reported a record 207 crypto hacks in H1 2026, more than double the 85 incidents recorded in H1 2025, with 126 attacks occurring in Q2.

Of this, the smart contract exploits accounted for 125 incidents, while compromised keys, custody systems, and signing infrastructure drove most stolen-value losses. All this happened amidst North Korea-linked hacking group Kimsuky’s reportedly integrating AI tools into its cyber operations. 

Final Summary

• Pirate Chain (ARRR), Gamdom, and Demex all got exploited in the past day.
• 2026 has already lost a total of $1.195 billion in value to hacks and scams.