Cryptocurrency Losses: $200 Million Lost to Hacks and Piracy in 2024

In a recent surge during 2024, the cryptocurrency industry has seen a rapid increase in financial losses due to frequent cyber attacks such as hacking and account theft. Blockchain security firm Immunefi disclosed that the first quarter of this year confirmed 32 attacks leading to losses exceeding $200 million. This figure represents a 15.4% increase compared to the $173 million reported in the same period last year.

February witnessed several adverse events causing significant financial damage. Twelve different incidents amounted to a theft of $67 million, nearly half of the $133 million stolen in January. Another major incident was a cyber attack on PlayDapp, one of the world’s leading cryptocurrency gaming platforms, resulting in a massive loss of $32.3 million. A large-scale attack also occurred on the decentralized cryptocurrency exchange FixedFloat, where hackers stole $26.1 million. This trend indicates that attackers are now increasingly focusing on DeFi platforms for such attacks, while centralized financial protocols appear less vulnerable.

The escalation of abusive practices has led to Ethereum being one of the most targeted victims. Regrettably, this platform alone suffered 12 attacks this year, accounting for over 85% of the total losses. This clearly highlights the risks associated with DeFi platforms running on Ethereum, as their open and integrated nature makes them susceptible to cyber attacks.

The recurrence of such misconduct underscores the importance of strengthening the security of cryptocurrency systems. To prevent such incidents, all stakeholders must take adequate security measures and conduct regular checks. This should include enhancing regulations and adopting appropriate standards across all relevant operational areas, creating a more stable and reliable environment for digital asset exchanges and platforms.

Despite various challenges facing the cryptocurrency market, it continues to demonstrate considerable resilience. As innovation in the field attracts more participation, it continues to grow. However, this progress brings new challenges that the public must face with the right mindset and understanding. Therefore, industry members, regulatory bodies, and cybersecurity professionals need to collaborate on appropriate strategies to address these threats.

Surprisingly, the new neoliberal pattern of encryption has not exposed the network risks to hackers and fraudulent activities. Crime is also deeply entrenched. It is estimated that in 2023 alone, criminal activities in the field stole an astonishing $1.8 billion, with North Korea’s Lazarus Group accounting for 17% of it. Incidents that year included a loss of over $200 million by Mixin Network and a $197 million fraud event on the Euler Finance lending platform.

As the global adoption rate of cryptocurrencies rises, so does the frequency and complexity of attacks on encryption. This necessitates regular discussions on cybersecurity issues. In doing so, all participants can strengthen the fundamental pillars of the cryptocurrency field and minimize the impact of malicious attacks by encouraging honesty, responsibility, and adaptability. Developing strategies to enhance security and set standards is crucial for the sustainable development of this rapidly evolving field.

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