Crypto News – Major Crypto Breach: $266 Million Stolen, WazirX Hit Hardest
Crypto News – In July 2024, online hackers stole approximately $266 million from the cryptocurrency ecosystem through a series of 16 distinct attacks, marking a significant increase in cybercrime within the crypto space.
WazirX Hack: $230 Million Loss
On July 18, Indian crypto exchange WazirX fell victim to a massive hack, resulting in the theft of over $230 million. This breach accounted for 86.4% of the total crypto stolen in July. Following thorough investigations, the attack was traced to North Korean hackers, identified through their exploit techniques and patterns. As of August 1, blockchain investigation firm PeckShield reported that the stolen funds, totaling 61,154 Ether (ETH), are still under the control of the hackers.
Other Notable Hacks in July
Several other significant hacks occurred in July:
- Compound Finance: $24 million stolen from this algorithmic protocol.
- Li.Fi Protocol: $10 million taken from this bridging protocol.
- Bittensor and Rho Markets: Both decentralized AI protocols and liquidity providers suffered $8 million losses each.
Hackers frequently moved the stolen funds through crypto mixer Tornado Cash to obscure their origins and avoid detection.
Comparison with June
July’s crypto thefts were markedly higher than June’s $176 million loss, which was distributed across approximately 20 incidents. The increase in July underscores a growing trend of cyberattacks targeting the cryptocurrency sector.
Terra Blockchain Hack
On the final day of July, the Terra blockchain temporarily halted operations at block height 11430400 due to a hack that drained $6 million. Exploiting a known vulnerability, the hacker stole 60 million ASTRO tokens, 500,000 USD Tether (USDT), 3.5 million USD Coin (USDC), and 2.7 Bitcoin (BTC). The Terra development team executed an emergency chain upgrade the same day to mitigate further damage. The update stated:
“Validators holding over 67% of the voting power on Terra have upgraded their nodes to prevent the exploit from recurring. More validators are expected to upgrade soon.”
CeFi Entities as Primary Targets
Deddy Lavid, co-founder and CEO of Web3 security firm Cyvers, highlighted that centralized finance (CeFi) entities are the primary targets for cryptocurrency hackers in 2024. Speaking to Cointelegraph, Lavid noted a rise in attacks against smart contract-based projects, attributing the security vulnerabilities to both code weaknesses and personal negligence.
FAQ: July 2024 Crypto Hacks
What happened in July 2024 regarding cryptocurrency security?
In July 2024, online hackers stole approximately $266 million from the cryptocurrency ecosystem through 16 separate attacks. The most significant breach involved the Indian crypto exchange WazirX, which lost over $230 million.
How did hackers manage to move the stolen funds?
Hackers often used crypto mixers like Tornado Cash to obfuscate their tracks and prevent the stolen funds from being traced. This practice helps them avoid detection and maintain control over the stolen assets.
How did WazirX’s hack impact the overall crypto ecosystem?
WazirX’s hack, which accounted for 86.4% of the total crypto stolen in July, significantly impacted the ecosystem. It led to a large portion of the theft, highlighting vulnerabilities in crypto exchanges and the growing sophistication of hackers.
What actions were taken in response to these hacks?
Following the hack of the Terra blockchain, an emergency chain upgrade was completed to prevent future exploitation. Validators holding over 67% of Terra’s voting power upgraded their nodes to secure the network. WazirX is also working on improving security measures.
Why are centralized finance (CeFi) entities the primary targets for hackers?
Centralized finance entities are major targets due to their large volumes of assets and often weaker security measures compared to decentralized platforms. Hackers find these entities lucrative and relatively easier to exploit.
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