In August, cryptocurrency hackers managed to steal a staggering $313.86 million in digital assets through more than 10 cyberattacks, casting doubt on the broader acceptance of the asset class. According to blockchain security firm PeckShield, phishing attacks were the primary method used by hackers, accounting for 93.5% of all stolen crypto funds and resulting in a loss of $293.4 million.
Among the top five hacks in August, two phishing attacks stood out, draining $238 million of Bitcoin (BTC) and $55.4 million worth of Dai (DAI). The total amount stolen in August reached 3.86 million worth of digital assets, highlighting the growing threat posed by cybercriminals in the cryptocurrency space.
One significant incident included the Ronin Network exploit, which saw the recovery of $12 million from the hacker but also suffered unauthorized crypto transactions worth $5.1 million. Additionally, the decentralized finance protocol Nexera experienced a loss of $1.83 million through a smart contract exploit.
The ongoing losses due to cyberattacks have raised concerns within the industry. An Immunefi report released on Aug. 29 revealed that the crypto industry has already lost $1.21 billion worth of digital assets to hacks and rug pulls year-to-date as of August 2024.
In a separate incident, India’s WazirX crypto exchange fell victim to one of the largest cyberattacks of 2024, losing $234.9 million from one of its multisig wallets. The exchange is currently undergoing a phased plan to restore its financial operations, including pursuing legal proceedings in Singapore.
To combat these threats, a team of ethical hackers has formed an elite unit called Security Alliance or SEAL to bolster defenses and prevent breaches in the cryptocurrency industry. Led by white hat hacker and Paradigm researcher Samczsun, the team has received over 900 hack-related tickets since its launch in August 2023.
The importance of cybersecurity in the cryptocurrency space cannot be overstated, as nearly 80% of cryptocurrencies never recover their value after a hack or exploit, causing more damage to projects than the breach itself. As the industry continues to evolve, it is crucial for companies and individuals to prioritize security measures to safeguard their digital assets from malicious actors.