The crypto space suffered a staggering $313 million in losses last month, with over ten different hacks wreaking havoc on the industry. However, it was two large phishing attacks that took the lion’s share of the stolen funds, accounting for 93.5% of the total losses. According to a report by blockchain security firm PeckShield, these two incidents alone resulted in a combined loss of approximately $293.4 million.
In one of the attacks, an unknown whale lost over 4,000 bitcoin (BTC) valued at around $238 million to a phishing scheme. The funds were subsequently moved through various platforms, complicating any potential recovery efforts. Another major incident involved a crypto holder losing $55.4 million in Dai (DAI) after their wallet was compromised, with the attacker converting the stolen funds into Ethereum (ETH).
Exploits and Vulnerabilities
The Ronin Network also made headlines for falling victim to a significant exploit, resulting in unauthorized crypto transactions totaling $5.1 million. Decentralized finance (DeFi) protocol Nexera was not spared either, losing $1.83 million due to smart contract manipulation. These incidents shed light on the vulnerabilities and risks associated with the burgeoning crypto industry.
A broader analysis by bug bounty platform Immunefi revealed that the crypto space has lost a staggering $1.21 billion in digital assets to hacks and rug pulls year-to-date. Despite the significant losses, it was noted that August saw a relative decrease in crypto-related incidents compared to previous months, with only $15 million being lost across five different events. This decline was in stark contrast to the massive losses incurred in July, primarily attributable to the hacking of WazirX.
WazirX: A Cautionary Tale
The Indian crypto exchange, WazirX, made headlines after losing a staggering $234.9 million from one of its multisig wallets in July. In response to the breach, the exchange has initiated a phased plan to restore its financial operations, including filing for a moratorium with the Singapore High Court. This legal protection shields WazirX from creditor actions during the restructuring process, ensuring a fair allocation of losses across affected users.
Overall, the recent spate of crypto hacks serves as a stark reminder of the risks inherent in the decentralized and largely unregulated crypto space. As the industry continues to grow, stakeholders must remain vigilant and proactive in addressing security vulnerabilities to safeguard against future incidents of theft and exploitation.
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