The cryptocurrency sector has faced significant losses this year. Over $1.5 billion has been lost due to more than 200 attacks. Major hacks have affected Ethereum, Bitcoin, and XRP the most. These incidents underline the vulnerabilities in the digital asset space.
Unprecedented Surge in Crypto Attacks
In the first half of 2024, the crypto industry has seen a dramatic increase in hacks. Ethereum (ETH), Bitcoin (BTC), and XRP have been the most affected. Hackers have stolen over $1.5 billion in various attacks. Only $319 million of these lost funds have been recovered.
This year’s losses are a 293% increase from 2023. Last year, the industry lost $480 million in similar incidents. DeFi protocols have been primary targets. They account for 59% of the total stolen value. Over 20 public chains have experienced major hacks. Ethereum and Bitcoin have topped the list for the amount lost via these hacks.
Major Exchange Breaches and DeFi Hacks
Ethereum and BNB Chain have been the most frequently targeted, each accounting for 31.3% of the total hacks. Arbitrum followed with 12.5% of the attacks. On June 3, 2024, DMM Bitcoin, a Japanese cryptocurrency exchange, reported a significant breach. Attackers stole 4,502.9 BTC, worth over $300 million at the time. This highlighted the vulnerabilities within exchanges handling large volumes of digital assets.
A week later, on June 10, UwU Lend, a DeFi lending protocol, was compromised. This breach resulted in a loss of $19.3 million in digital assets. This incident underscores the ongoing risks associated with DeFi platforms, which often operate with less regulatory oversight. The platform then offered a $5 million reward for catching the hacker.
Notable Hacks and Security Breaches
Earlier in the year, on February 3, 2024, Chris Larsen, co-founder of Ripple, confirmed a major security breach involving his personal wallets. Initially, there were rumors that Ripple itself was targeted. However, Larsen clarified that the hack involved his digital wallets and not Ripple’s corporate assets. Hackers managed to transfer 213 million XRP tokens, valued at approximately $112.5 million. On-chain detective ZachXBT first alerted the community to the suspicious transactions. In response to the theft, Larsen and various crypto exchanges took swift action to mitigate the impact.
Multiple exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC, collaborated to freeze a significant portion of the stolen funds. Binance alone froze $4.2 million worth of XRP to aid the investigation.
On April 2, 2024, FixedFloat, a Bitcoin Lightning-based exchange, experienced a security breach. Unauthorized transactions led to financial losses exceeding $3 million. This incident highlighted recurring security issues for FixedFloat, following a similar breach earlier in the year. In February, hackers stole $26 million worth of Ethereum and Bitcoin from FixedFloat. These digital assets were then dumped to exchanges to realize profits.
The ongoing trend of hacks and breaches in the cryptocurrency sector is a stark reminder of the need for enhanced security measures. As the industry continues to grow, the importance of securing digital assets cannot be overstated.
