Explore the Biggest Crypto Hacks of 2023
In 2023, the cryptocurrency industry experienced several major hacks, resulting in over $1 billion in losses. These hacks occurred mainly in the final quarters of the year, coinciding with the end of a prolonged crypto winter. Hackers took advantage of the renewed interest in the market and targeted major defi protocols and crypto exchanges.
Mixin Breach ($200m): Biggest Crypto Hack of 2023
In September 2023, Mixin suffered a massive loss of $200 million due to a data breach. The platform was unable to track down the attacker or recover the stolen funds. However, Mixin committed to compensating users for half of their lost holdings.
Euler Finance Hack ($197m)
In March 2023, Euler Finance experienced a significant hack, resulting in the theft of nearly $200 million. The stolen funds were unexpectedly returned to Euler Finance a few weeks later, accompanied by an apology note.
Poloniex Hack (Over $120m)
Popular crypto exchange Poloniex faced a security breach in November, leading to a loss exceeding $120 million. The majority shareholder of Poloniex pledged full reimbursement for the lost assets.
HTX Hack ($110m)
HTX (formerly known as Huobi) experienced a significant security breach, resulting in a net outflow of $250 million. This followed an attack in November where HTX lost around $110 million. User funds were deemed safe despite the substantial outflow.
MultiChain Rug Pull ($130m)
MultiChain reported suspicious withdrawals totaling $130 million in July, leading to speculation of a hack or rug pull. The CEO of MultiChain was arrested by Chinese authorities, and the protocol ceased operations.
Atomic Wallet Hack ($100m)
Atomic Wallet, a widely-used software crypto wallet, was hacked in June, resulting in a loss of $100 million. The incident led to a class-action lawsuit against Atomic Wallet.
CoinEx Hack ($70m)
Crypto exchange CoinEx suffered a major security breach in September, resulting in the theft of $70 million. The North Korean Lazarus group is suspected to be behind this attack.
KyberSwap Hack ($47m)
KyberSwap fell victim to a smart contract reentrancy attack in November, resulting in the theft of $47 million. The hacker made unusual demands, seeking total control over KyberSwap’s protocol.
North Korea’s Lazarus Group: State-Affiliated Threat in Crypto Hacks
The Lazarus Group, a North Korea-linked hacker organization, has been responsible for over $300 million in crypto hacking incidents in 2023. They have targeted centralized finance platforms and noncustodial wallets.
Crypto Hacks in 2024: Prospects
The surge of crypto hacks in 2023 raises concerns for the industry heading into 2024. Building industry-wide resilience will be crucial to curbing these threats.
Hot Take: Crypto Hacks Highlight Ongoing Security Challenges
The significant crypto hacks of 2023 underscore the ongoing battle between cybersecurity and cybercriminals. These incidents highlight the vulnerabilities of the crypto industry and the need for increased security measures. As we enter 2024, it is crucial for stakeholders to prioritize cybersecurity and work towards building resilience against sophisticated attacks.
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