Cybercriminals targeting cryptocurrencies are showing no signs of slowing down. In November alone, hackers stole over $71 million, bringing this year’s total losses to a staggering $1.48 billion, according to a recent report.
While slightly below last year’s numbers, the threat remains pressing, with criminals refining their methods to breach digital wallets and decentralized platforms.
Crypto Hacks Decline
A recent report by Immunefi highlighted that crypto hacks and exploits have dropped by 15% compared to the same period in 2023. Mitchell Amador, Immunefi’s founder, acknowledged the progress in a report by Cointelegraph but warned that the industry is always one attack away from substantial damage.
Hackers continue to exploit vulnerabilities in decentralized finance (DeFi) protocols and crypto exchanges, underlining the persistent risks in this burgeoning sector. Rising cryptocurrency valuations and the booming total value locked (TVL) in DeFi make the industry an enticing target. The TVL increased by over 164% since 2023, reflecting a growing ecosystem that also draws malicious actors.
1/ ⚠️ Is crypto getting safer? The ecosystem has lost $1.48 billion to hackers and rug pullers YTD—a 15% decrease compared to $1.7 billion during the same period last year. The decrease is also noticeable on a month-over-month basis. But hold the fireworks—there’s more to it ⬇️
— Immunefi (@immunefi) November 28, 2024
Among November’s high-profile attacks was the $25.5 million Thala hack. Fortunately, the project recovered the stolen assets. Meanwhile, the $21 million DEXX hack on Nov. 18 affected over 900 investors, highlighting the widespread impact of these breaches.
XT Exchange Breach
Elsewhere, Seychelles-registered XT Exchange reported a breach involving $1.7 million in stolen assets. Blockchain security firm PeckShield tracked the stolen funds, which were converted into 461.58 ETH. In response, XT promised users transparency by introducing a Merkle Tree Asset Proof System and assured them that its reserves could cover all potential losses.
???? XT Statement on Abnormal Transfer of Platform Wallet Assets ????Today, XT detected an abnormal transfer from our platform wallet. Rest assured, this will not affect our users. ???????? We always maintain reserves 1.5x greater than user assets to ensure maximum security. Our… pic.twitter.com/SdEL75PxZF
— XT Exchange (@XTexchange) November 28, 2024
This year, there was a resolution in one of crypto’s largest historical hacks. Ilya Lichtenstein, who orchestrated the 2016 Bitfinex hack with his wife Heather Morgan, received a five-year prison sentence, the BBC reported.
The duo laundered nearly 120,000 stolen Bitcoin, which was then valued at $70 million but is worth billions today. Despite their sophisticated methods, including fictitious identities and cryptocurrency swaps, law enforcement recovered $3.6 billion, the largest financial seizure in U.S. history.
Meanwhile, recent research showed that identity fraud has expanded into a global problem due to AI tools. This has reportedly enabled even amateur fraudsters to exploit weaknesses in systems worldwide.
Additionally, fraud has become increasingly accessible due to the rise of fraud-as-a-service platforms and AI-driven tools. Scammers now rely on ready-made systems requiring minimal expertise to conduct complex schemes.
This article was written by Jared Kirui at www.financemagnates.com.
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