In July, cybercriminals made off with approximately $266 million from the cryptocurrency ecosystem across 16 distinct attacks. The most significant heist occurred on July 18, when Indian crypto exchange WazirX suffered a loss exceeding $230 million, representing 86.4% of the total crypto stolen that month. Investigations have pointed to North Korean hackers as the culprits, based on the techniques and processes used in the attack.
What Happened in July?
Blockchain security firm PeckShield reported that the hackers still controlled the 61,154 Ethereum stolen from WazirX as of August 1. Other major victims included Compound Finance, which lost $24 million, and Li.Fi protocol, which suffered a $10 million loss. Additionally, Bittensor and Rho Markets each faced losses of $8 million.
In most instances, the stolen funds were funneled through the crypto mixer Tornado Cash to evade detection. In comparison, June saw a lower total loss of $176 million, spread over around 20 incidents, highlighting an alarming spike in July.
Details on the Issue
At the end of July, the Terra ecosystem experienced a $6 million loss due to a hacking incident. The hacker exploited a known vulnerability, stealing significant amounts of ASTRO (ASTRO), USD, USD Coin, and Bitcoin. Terra developers quickly implemented an emergency chain upgrade to prevent further damage.
Key Takeaways for Users
– Secure assets by using hardware wallets.
– Regularly update and patch software to fix vulnerabilities.
– Employ multi-factor authentication for enhanced security.
– Stay informed about the latest security threats and best practices.
According to Deddy Lavid, CEO of Web3 security firm Cyvers, centralized finance institutions will become prime targets for crypto hackers in 2024. Lavid also noted that attacks on smart contract-based projects are on the rise, with vulnerabilities arising from both code and human error.