16 Crypto Hacks Resulted in $266 Million in Losses in July

Crypto hacks resulted in losses exceeding $266 million. According to data compiled by on-chain security platform PeckShieldAlert, 16 incidents occurred during the month, with the most significant loss coming from a single attack on the Indian-based crypto exchange WazirX. 

This hack resulted in a loss of $230 million, accounting for a substantial portion of the overall damages. PeckShieldAlert’s recent tweet revealed these figures, excluding a potential governance attack on Compound Finance flagged by crypto sleuth ZachXBT, who identified vulnerabilities in the Compound Finance website.

WazirX hack dominates July losses

The WazirX hack was the most significant incident in July, accounting for 86% of the stolen funds. According to the data from PeckShieldAlert, the exchange lost a staggering 61,154 ETH, which remains unmoved since the hack. In response to this breach, WazirX and its co-founder, Nischal Shetty, have actively sought solutions to recover the lost assets. 

Shetty announced a bounty of $23 million as a reward for any information or assistance that leads to the recovery of the stolen funds. This bold move reflects crypto hacks’ increasing vulnerability and significant financial impact as platforms like WazirX struggle to secure their assets and maintain user trust.

The total bounty has been updated to $23M thanks @zachxbt for the suggestion https://t.co/qzaqwAuLod

— Nischal (Shardeum) (@NischalShetty) July 21, 2024

Rising Crypto Hacks in Q2 2024

The recent spike in crypto hacks is not an isolated occurrence. According to a bug bounty platform Immunefi report, the second quarter of 2024 witnessed a significant increase in such incidents. The report highlights that crypto protocols lost over $572 million during Q2 2024, with $564 million attributed to hacks and $8.4 million lost to fraud and scams. 

Immunefi’s findings emphasise that 53 hacks and 19 fraud incidents were recorded during this period, marking a sharp increase in criminal activities compared to the previous year. Centralized Finance (CeFi) platforms bore the brunt of the attacks, with 70% of exploits targeting platforms like DMM Bitcoin, BtcTurk, and Hedgey. 

DMM Bitcoin suffered a massive loss of $305 million, while BtcTurk faced losses of $55 million. Decentralized Finance (DeFi) platforms accounted for 30% of the losses, with platforms like Sonne Finance and Velocore experiencing breaches. This pattern demonstrates attackers’ continued focus on CeFi platforms, highlighting the need for enhanced security measures across the crypto industry.

Ethereum emerged as the most targeted blockchain, with 34 reported incidents in Q2 2024, followed by BNB Chain, which experienced 18 attacks. This trend underscores popular blockchain networks’ persistent threats and the urgent need for robust security protocols to protect users and assets.

Significant increase in Crypto losses

The data from Immunefi reveals a 112% spike in total losses compared to Q2 2023, indicating a growing challenge for the crypto industry in combating cybercrime. Hackers increasingly target vulnerable platforms and exploit security gaps as crypto-assets continue gaining popularity and value. 

The rise in incidents underscores the importance of vigilance and proactive measures to safeguard the integrity of crypto platforms and protect user investments. The alarming rise in crypto hacks and the substantial financial losses incurred highlight the urgent need for enhanced security measures and industry-wide collaboration to combat cyber threats. The ongoing battle against crypto hacks requires all stakeholders’ vigilance, innovation, and cooperation to protect the burgeoning digital economy.

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