In August 2024, the crypto industry faced cyberattacks resulting in losses of $313.86 million. A significant portion of these losses came from phishing attacks. Additionally, the number of crypto ATMs in Australia has increased, raising money laundering concerns.
Losses from Cyberattacks
In August 2024, the crypto industry suffered losses amounting to $313.86 million due to various cyberattacks. Over 10 attacks were reported, with phishing attacks being the most prevalent, accounting for 93.5% of the stolen funds, totaling $293.4 million. Among the top five hacks, two phishing attacks stood out, stealing $238 million in Bitcoin and $55.4 million in Dai. The Ronin Network was also compromised, though $12 million was recovered. Decentralized finance protocol Nexera lost $1.83 million due to a smart contract vulnerability. A report from Immunefi on August 29 revealed that the crypto industry has lost $1.21 billion to hacks and rug pulls so far this year. In response to the growing threat, a group of ethical hackers formed the Security Alliance (SEAL) to strengthen the industry's defenses.
New Zero-Day Hack Threat
Microsoft cybersecurity researchers identified a zero-day vulnerability in the Chromium engine, used in the Chrome browser. This vulnerability was exploited by a North Korean hacker group known as Citrine Sleet but was patched on August 21. Microsoft linked this group to the attack with 'medium confidence.' Citrine Sleet is infamous for targeting the cryptocurrency sector and developing the AppleJeus malware, associated with the Lazarus group. This was the third zero-day vulnerability patched in Chromium this year. Microsoft notified affected customers but did not disclose the number involved. The group creates fake websites mimicking legitimate crypto platforms to distribute malicious files. Previously, they used fake Telegram accounts to distribute malware.
Crypto ATM Growth and Money Laundering Concerns
The number of cryptocurrency ATMs in Australia has increased 17-fold over the past two years, reaching 1,162 units according to Coin ATM Radar. Australia now ranks third globally in the number of these kiosks, behind only the US and Canada. This growth raises law enforcement concerns as crypto ATMs can be used for money laundering. In March last year, the Australian Federal Police formed a multi-agency task force to combat money laundering after finding criminals using crypto ATMs for laundering illicit gains. TRM Labs reports that these kiosks have processed at least $160 million in illicit transactions since 2019.
The crypto industry continues to face cyber threats and financial risks associated with expanding infrastructure and new vulnerabilities. Efforts to enhance security and regulatory measures are ongoing to protect assets and users.
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