The recent surge in cyberattacks within the crypto space has caused significant financial losses to investors and companies alike. According to a report by blockchain security firm PeckShield, over $313 million was lost in a series of hacks last month. Notably, two large phishing attacks accounted for 93.5% of the total stolen funds, resulting in a combined loss of approximately $293.4 million.
One of the incidents involved an unknown whale losing over 4,000 bitcoin (BTC) in a phishing scheme, amounting to an estimated $238 million. The stolen funds were moved across various platforms, making recovery efforts nearly impossible. In another attack, a crypto holder had $55.4 million worth of Dai (DAI) transferred from their wallet without authorization, with the funds allegedly swapped for Ethereum (ETH) equivalents.
The Ronin Network also suffered a significant exploit, resulting in $5.1 million in unauthorized crypto transactions. Decentralized finance (DeFi) protocol Nexera experienced a theft of $1.83 million due to smart contract manipulation. These incidents highlight the vulnerabilities present in the crypto industry and the need for enhanced security measures.
A report by bug bounty platform Immunefi revealed that the crypto industry has lost $1.21 billion in digital assets due to hacks and rug pulls year-to-date. Despite a slight decrease in losses in August, compared to July, the industry remains susceptible to cyber threats. The hacking of WazirX, which resulted in a loss of $234.9 million, remains one of the largest breaches in recent times.
In response to the WazirX breach, the company has initiated a phased plan to restore its financial operations. This includes filing a moratorium with the Singapore High Court under the city-state’s Insolvency, Restructuring, and Dissolution Act of 2018. The moratorium provides legal protection to shield the company from actions by creditors, allowing for a planned restructuring to allocate losses pro-rata across affected users.
Overall, the series of cyberattacks and hacks in the crypto industry underscore the urgent need for robust security measures and regulatory oversight to protect investors and companies from financial losses and maintain trust in the digital asset ecosystem.