Hacks and Exploits Continue to Plague Crypto Industry
In 2023, the crypto industry faced ongoing challenges with hacks and exploits, resulting in significant financial losses. However, analysts noted that this year was an improvement compared to the previous year, which had the highest number of incidents on record. According to a report by blockchain intelligence company TRM Labs, although there were a few major hacks in December that could close the gap, the total amount stolen in 2023 is expected to be significantly lower than the $4 billion stolen in 2022. Nonetheless, TRM Labs reported that $1.7 billion has been lost this year.
Mixin: $200 million
In September, hackers targeted Mixin, a Hong Kong-based cross-chain asset transfers and decentralized exchange project, stealing $200 million in cryptocurrency. The project’s cloud service provider was compromised, leading to frozen withdrawals. Mixin faced criticism for its design as some claimed it was more centralized than it claimed to be.
Euler Finance: $197 million
In March, hackers conducted a flash loan attack on DeFi lender Euler Finance, resulting in the theft of $197 million worth of various cryptocurrencies. The stolen funds were mostly returned by the hacker following the launch of a reward campaign by the Euler Foundation.
Poloniex: $126 million
Poloniex, a crypto exchange founded by Justin Sun, fell victim to hackers in November who stole over $126 million worth of cryptocurrencies including Ethereum, Tron, stablecoins USDT and TUSD, and meme coins. The exchange managed to freeze a portion of the stolen assets associated with the hackers’ addresses.
Atomic wallet: $100 million
In June, North Korean hackers targeted Atomic Wallet, a self-custodial and decentralized wallet, stealing initially $35 million in digital tokens. The amount grew significantly as funds continued to leave wallets without any explanation to customers. Blockchain firm Elliptic collaborated with investigators and exchanges worldwide to trace and freeze the stolen funds.
Curve: $60 million
Hackers exploited a vulnerability in the programming language used by Curve, a decentralized finance protocol, resulting in a theft of $60 million worth of cryptocurrencies. However, Curve offered a reward to the attacker and managed to recover 73% of the stolen funds.
Kyber: $48 million
DeFi market maker KyberSwap experienced an attack in November, leading to the theft of nearly $50 million in cryptocurrencies. The attacker demanded complete control of the protocol and purging of Kyber’s leadership through an open on-chain letter.
Stake: $40 million
In September, hackers targeted Stake, a popular gambling site associated with rapper Drake, resulting in a $40 million hack. The company assured customers that their funds were safe despite the crypto funds being drained from one of its wallets.
Hot Take: Crypto Industry Faces Ongoing Security Challenges
The crypto industry continues to grapple with security challenges as hackers and criminals exploit vulnerabilities in various projects and platforms. While 2023 showed some improvement compared to the previous year, billions of dollars were still lost due to these incidents. It is crucial for crypto users and companies to prioritize robust security measures and stay vigilant against potential threats in order to protect their assets effectively.
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