Exclusive Over $2.3
Billion Stolen in Crypto Hacks and Frauds
in 2024
Crypto hacks and frauds led to over $2.3 billion in losses this year,
highlighting the persistence of security vulnerabilities in the industry. This
figure spans 165 incidents, marking a 40% increase from the previous year.
While the total is lower than the $3.7 billion lost in 2022, the continued
rise in attacks signals that the industry’s defenses remain inadequate against
the advanced threats.
Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum and Access Control Failures Dominate Losses
According to Cyvers annual report, access control vulnerabilities stood
out as a primary driver of losses, responsible for 81% of the total stolen
funds.
Although these incidents accounted for just 41.6% of the cases, their outsized
impact reflects the dangers of mismanaged security protocols. Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum was the
most affected blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн this year, recording over $1.2 billion in losses.
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The Key Attack Vector of Crypto Hacks from 2022 to 2024. Source: Cyvers
A rather disturbing trend this year was the prevalence of “ Pig Butchering ”
scams . These elaborate fraud schemes swindled over $3.6 billion from
unsuspecting users, with most activity concentrated on the Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum
blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн.
“The surge in access control breaches and sophisticated scams like Pig
Butchering underscores the importance of implementing AI-powered risk
assessment, transaction validation, and anomaly detection tools. Security must
evolve to stay ahead of increasingly complex and coordinated attack,” Cyvers
told BeInCrypto.
Also, smart contract vulnerabilities dominated the attack landscape,
particularly in DeFi . The third quarter of 2024 was the worst for losses,
with $790 million stolen during this period.
“If crypto platforms want to avoid becoming the next victim of hackers, they
need to deploy robust detection and prevention systems and integrate them with
their crisis response mechanisms. As Cyvers data shows, 9 out of 10 smart
contracts that were hacked were audited and many of them have underwent strict
penetration tests. This, clearly, was not enough, Cyvers researchers
noted.
By contrast, Q4 recorded significantly lower activity, suggesting a temporary
lull in malicious operations. Funds Lost to Crypto Hacks Per Quarter. Source:
Cyvers
Biggest Crypto Hacks of 2024: WazirX, Radiant Capital, and DMM Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin
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The year’s largest individual incidents offered stark reminders of the
vulnerabilities within the crypto ecosystem.
In July, Indian crypto exchange WazirX suffered a devastating hack , losing
approximately $234.9 million. Attackers exploited weaknesses in the exchange’s
multisignature (multisig) wallets, gaining unauthorized access to funds.
Multisig wallets , which require multiple private keys for transaction
approvals, are often seen as more secure. However, this incident demonstrated
how poor implementation of such systems can lead to catastrophic breaches.
WazirX temporarily halted trading and withdrawals to contain the damage and
initiated a comprehensive security audit. Despite these efforts, the exchange
remains offline as it seeks regulatory approval to resume operations.
“We are striving to obtain the court s sanction of the Scheme at the
earliest feasible timeline. Subject to legal and regulatory requirements, the
platform to resume trading post-effective Scheme date,” WazirX recently wrote
on X (formerly Twitter).
In November, Indian authorities arrested a suspect linked to the hack , though
the mastermind remains at large. Investigators criticized Liminal Custody, a
firm responsible for securing WazirX’s digital wallets, for failing to provide
critical information during the probe.
Radiant Capital, a prominent blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн lender, was another high-profile
victim this year. In October, the platform lost over $50 million in a
multi-chain attack .
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Hackers reportedly gained access to three of the platform’s private keys,
enabling them to drain assets across several networks, including Arbitrum ,
Binance Smart Chain, Base, and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum. Hackers implanted Trojans on the
computers of Radiant Capital Team members, tricking hardware wallets into
signing malicious transfers. Source: Daniel Von Fange
The attack has been attributed to North Korean-backed actors , who are
increasingly targeting the crypto sector with advanced tactics. Radiant
Capital’s breach reflects the heightened risks associated with cross-chain
operations and the urgent need for better private key management.
Meanwhile, the Japanese cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта exchange DMM Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin faced one of the
most severe incidents in 2024. In May, the platform lost approximately 4,502.9
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin, valued at $320 million at the time, after attackers compromised a
private key. Despite prolonged efforts to recover stolen assets and reassure
customers, DMM Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin announced its closure in December.
The exchange has since begun transferring user accounts to SBI VC Trade,
marking a grim conclusion to its operations. The incident highlights the
devastating impact of inadequate key security, particularly for centralized
platforms.
CeFi Risks and Emerging Threats from Advanced Technologies
Centralized financial platforms (CeFi) continue to face significant
challenges. Single points of failure, such as centralized reserves and
insufficient oversight of key management, make these platforms attractive
targets for attackers.
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The reliance on multisignature wallets, which have proven vulnerable under
certain conditions, further aggravates these risks. Emerging technologies,
including quantum computing and artificial intelligence , are expected to
intensify threats by enabling increasingly complex attack methods.
These developments necessitate proactive security measures to keep pace with
the dynamic threat landscape. Experts have noted that incidents like the
WazirX and Radiant Capital breaches could likely have been avoided with the
use of proactive threat monitoring solutions.
“We can assess with certainty that such prominent attacks, like the $235
million WazirX hack and the $50 million Radiant Capital hack could have been
avoided and 100% of the funds could have been saved, had the companies used
such solutions,” Cyvers told BeInCrypto
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The sharp increase in malicious activity this year reflects the critical need
for stronger defenses across the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта ecosystem. Platforms lacking
real-time monitoring and preemptive security tools remain highly vulnerable to
breaches, putting user funds at risk.
The industry must prioritize adopting advanced security measures and fostering
greater collaboration between stakeholders to address these ongoing threats
effectively.
“Zero-day attacks are unpredictable and are not based on previous, known,
practices. Without real-time monitoring and detection mechanisms, and
pre-emptive tools crypto platforms can not address such attacks and
thwart in real-time,” Cyvers experts noted.
As the crypto sector continues to grow, so too will the ingenuity of attackers
seeking to exploit its vulnerabilities. This year’s incidents have made it
clear that reactive measures are no longer sufficient.
ðBest crypto platforms in Europe | December 2024
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ðBest crypto platforms in Europe | December 2024
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ðBest crypto platforms in Europe | December 2024
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