Cryptocurrency Hacks Exceed $313 Million in Losses in August
Date: 2024-09-02 Author: Oliver Abernathy Categories: BUSINESS
Cryptocurrency hackers stole $313.86 million in digital assets in more than 10 cyberattacks in August, raising doubts about the wider adoption of crypto assets.
According to blockchain security company PeckShield, phishing attacks alone accounted for 93.5% of all stolen cryptocurrency funds, resulting in losses of $293.4 million.
Of the five largest hacks in August, two phishing attacks siphoned off $238 million in Bitcoin.
Other significant losses include the Ronin network hack, which recovered $12 million from a hacker but suffered $5.1 million in unauthorized crypto transactions. Decentralized finance protocol Nexera also lost $1.83 million due to a smart contract exploit.
Cyberattack losses continue to be a concern
According to a report from Immunefi published on August 29, the cryptocurrency industry has lost $1.21 billion in digital assets due to hacks and rug pulls since the beginning of 2024 as of August 2024.
In July, Indian crypto exchange WazirX fell victim to one of the largest cyberattacks of 2024. WazirX lost $234.9 million from one of its multi-signature wallets. The exchange is currently implementing a phased plan to restore its financial operations. WazirX’s recovery efforts include legal action in Singapore.
Ethical Hackers Unite to Protect the Industry
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-hacking team, Security Alliance or SEAL, is led by a white hat hacker and Paradigm researcher named Samczsun and has received over 900 hack-related tickets since its launch in August 2023.
According to an August 22 report from Immunefi, nearly 80% of cryptocurrencies never recover their value after a hack or exploit. This loss in value often causes more damage to projects than the hack itself.
