Crypto Space Lost $313.86 Million to Hackers Last Month

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As a seasoned analyst with over two decades of experience in the financial industry, I’ve seen my fair share of market turbulence and volatility. However, August 2024 has left me quite shaken, even by crypto standards. The staggering losses reported in the digital asset space are truly eye-opening, with hackers walking away with a staggering $1.5 billion (not including the latest report from Immunefi).

In August, the crypto sector faced significant challenges as hackers allegedly swiped approximately $313 million in virtual currencies across more than ten different incidents.

As reported by PeckShield, a firm specializing in blockchain security, approximately 95% of the total $293.4 million worth of losses were due to phishing attacks.

An additional unfortunate incident involves the misuse of the Roin Network. Despite the recovery of $12 million from the stolen assets, there remain unapproved transactions amounting to $5.1 million.

As an analyst, I’d like to bring your attention to an additional incident involving Nexera, a decentralized finance protocol. Unfortunately, a smart contract glitch led to a loss of approximately 1.83 million units for our team.

August 2024 saw over 10 cyber-attacks on cryptocurrency platforms, leading to approximately $313.86 million in losses. The two largest incidents, both involving unauthorized transfers due to phishing scams, accounted for a staggering 93.5% of the total funds stolen, equating to around $293.4 million. #Key Incidents in…

— PeckShieldAlert (@PeckShieldAlert) September 1, 2024

Additionally, it’s worth noting that according to a report by Immunefi, a security firm, the accumulated losses due to hacking and fraudulent activities in the cryptocurrency sector now stand at approximately $1.21 billion as of August 29.

Many of these cryptocurrencies did not regain their original value following a hack, as approximately 80% of them were unable to rebound.

In the past few weeks, one of the most significant hacking incidents occurred against WazirX, an Indian cryptocurrency exchange. Over $234.9 million was stolen from one of their wallets, causing a stir in the crypto community and leading many to fear that the exchange may face financial ruin.

On the other hand, the platform is actively working towards resuming operations and is taking legal steps in Singapore as a key component of its rehabilitation strategy.

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2024-09-01 14:12