Due to hacker attacks in August, over $313.86 million in crypto assets were lost in more than 10 cyber attacks, raising doubts about the broader acceptance of the asset class.
What Happened in August?
According to a report by blockchain security firm PeckShield, phishing attacks alone accounted for 93.5% of all stolen crypto funds, leading to a loss of $293.4 million. Two of the five largest attacks in August involved the theft of $238 million in Bitcoin and $55.4 million in Dai through phishing attacks. Other significant losses included the Ronin Network vulnerability, which recovered $12 million from hackers but suffered unauthorized crypto transactions worth $5.1 million. The decentralized finance protocol Nexera also faced a loss of $1.83 million due to a smart contract vulnerability.
Details on the Issue
To protect the cryptocurrency industry from financial losses due to hacks, a team of ethical hackers has formed an elite unit to strengthen defenses and prevent breaches. The anti-hack response team, Security Alliance or SEAL, is led by white-hat hacker and Paradigm researcher Samczsun and has received over 900 hack-related reports since its launch in August 2023.
Statistics and Consequences
According to an Immunefi report published on August 29, the crypto industry saw $1.21 billion worth of crypto assets lost to hacks and rug pulls since the beginning of the year as of August 2024. In July, India’s WazirX crypto exchange fell victim to one of the largest cyber attacks of 2024, losing $234.9 million from one of its multi-signature wallets. The exchange is currently in the process of implementing a phased plan to restore its financial operations, including pursuing legal actions in Singapore. According to an Immunefi report dated August 22, approximately 80% of cryptocurrencies never regain their value after a hack or exploit, which often causes more damage to projects than the exploit itself.
August was a month of significant losses for the cryptocurrency industry due to numerous cyber attacks. Despite efforts to enhance security, the scale of the losses highlights the need for further improvement in defense measures.
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