The crypto world was hit by millions of dollars worth of cyber attacks last month.

According to data shared by blockchain security company PeckShield, the most notable cyber attacks that occurred in August were two major phishing operations. These two attacks resulted in a total loss of $293.4 million, accounting for 93.5% of the total loss. The attackers managed to seize $238 million worth of Bitcoin (BTC) and $55.4 million worth of Dai (DAI).

CYBER ATTACKS ARE ALARMING CRYPTO INVESTORS

This security crisis in the cryptocurrency ecosystem has highlighted the risks that the industry faces. In addition to phishing attacks, security vulnerabilities in various protocols have also been highlighted. For example, a hacker carried out an unauthorized transaction worth $5.1 million in the Ronin Network. Although the security team intervened quickly and managed to recover $12 million, this incident once again brought attention to security vulnerabilities in the industry.

Nexera, a decentralized finance (DeFi) protocol, also became a target during this period. The attackers exploited a vulnerability in their smart contracts and seized $1.83 million from the protocol. This incident once again proved how important security controls are for DeFi projects.

$1.21 BILLION LOSS IN VALUE

According to a report published by blockchain security firm Immunefi on August 29, the cryptocurrency industry has suffered a loss of $1.21 billion due to hacking incidents and scams since the beginning of 2024. This highlights the vital importance of security measures in the industry.

One of the most notable incidents among these events was the attack on the Indian cryptocurrency exchange WazirX. The exchange was hacked, and $234.9 million worth of cryptocurrencies were stolen from a multi-signature wallet. WazirX officials announced that they have implemented a gradual recovery plan to compensate for the loss and that legal proceedings are ongoing in Singapore.

ETHICAL HACKERS TAKE ACTION

In light of these developments, ethical hackers have started to take action. They have formed an intervention team called SEAL to protect the industry from such attacks. Led by white-hat hacker and Paradigm researcher Samczsun, the team has intervened in over 900 hacking attempts in the past year.

According to another report by Immunefi, approximately 80% of stolen cryptocurrencies after a hack or exploitation cannot be recovered. This not only causes financial damage to projects but also leads to a significant loss of reputation. Industry experts emphasize the need for tighter security protocols and regular audits to prevent such incidents.

These events serve as a reminder that the cryptocurrency world needs to invest more in security and take precautions. A closer collaboration between investors, platforms, and regulatory institutions is crucial for the future of the industry.