- Major Hacks and Losses
- Industry Overview
- Ethical Hackers Protect the Industry
In August 2024, damages from hacker attacks in the cryptocurrency sector amounted to more than $313 million, raising questions about the security and acceptance of this investment category.
Major Hacks and Losses
According to blockchain security firm PeckShield, over ten cyberattacks targeted cryptocurrency assets in August. Phishing attacks accounted for 93.5% of all incidents, resulting in a loss of $293.4 million. Two of the top five hacks included phishing attacks which drained $238 million in Bitcoin and $55.4 million worth of Dai. Other significant losses involved the Ronin Network exploit, with unauthorized transactions worth $5.1 million, despite recovering $12 million from the hacker. The decentralized finance protocol Nexera lost $1.83 million due to a smart contract exploit.
Industry Overview
An Immunefi report released on August 29 indicates that the cryptocurrency industry has witnessed losses of $1.21 billion year-to-date in 2024 due to hacks and fraud. Significant losses were reported in India, where the WazirX crypto exchange fell victim to one of the largest cyberattacks of 2024, losing $234.9 million from one of its multi-signature wallets. The exchange is currently implementing a phased plan to restore its financial operations and is pursuing legal proceedings in Singapore.
Ethical Hackers Protect the Industry
To safeguard the cryptocurrency industry from financial losses due to hacks, a team of ethical hackers has formed an elite SEAL unit, led by white hat hacker and Paradigm researcher Samczsun. Since their launch in August 2023, the team has received over 900 hack-related tickets. An Immunefi report released on August 22 indicates that nearly 80% of cryptocurrencies never recover their value after a hack or exploit, often causing more damage to projects than the exploit itself.
Cyberattacks continue to pose a serious threat to the cryptocurrency industry, causing significant financial losses and undermining trust in this investment category. Ethical hackers and specialized security teams play a crucial role in preventing such incidents and protecting assets.
