The Crypto Community Witnessed a Surge in Hacks and Scams in February 2024
In the first two months of 2024, the crypto community experienced an alarming increase in hacks and scams targeting high-profile figures and projects. According to PeckShield, a crypto investigator focused on security, February saw a significant rise in the total value of cryptocurrencies stolen from these attacks, with a staggering 97.6% month-on-month (MoM) increase.
Over 21 Crypto Attacks Occurred in February
During the month of February, hackers stole approximately $360.83 million through more than 21 attacks. This represents a 96.7% increase compared to the previous month, where $182.54 million was stolen. Although the number of individual attacks decreased by 30% compared to January, the overall value stolen rose significantly.
Key Points:
- In February, hackers stole around $360.83 million during over 21 crypto attacks.
- This marks a 97.6% month-on-month increase compared to January.
- The number of individual attacks dropped by 30% compared to the previous month.
It is worth noting that the theft of Ripple co-founder Chris Larsen’s addresses accounted for 70% of the total value stolen in January. Similarly, the PlayDapp hack at the beginning of February represented approximately 71% of the stolen funds for that month.
PeckShield’s report also revealed that only 1.8% of the stolen funds have been recovered so far, totaling $6.7 million. The majority of these funds were returned through negotiations with the hacker involved in the Seneca attack, which resulted in the recovery of $5.3 million.
Top Three Attacks of the Month
The high-profile attacks targeted various projects and individuals within the crypto community. The most significant losses were incurred by PlayDapp, FixedFloat, and Jeff ‘Jihoz’ Zirlin, co-founder of Axie Infinity.
PlayDapp:
PlayDapp, a popular web3 gaming platform, suffered the loss of 200 million PLA tokens initially. Subsequently, an additional 1.4 billion tokens were stolen after failed attempts to negotiate with the hackers. In total, PlayDapp lost $290 million and decided to migrate to a new token to protect its customers.
FixedFloat:
The decentralized finance (DeFi) crypto exchange FixedFloat experienced a theft of nearly $26 million in Bitcoin (BTC) and Ether (ETH). The hackers dispersed the funds across multiple addresses to obfuscate their traceability. Bitcoin was divided among different addresses, while the stolen ETH was sent to externally owned accounts and the centralized mixer eXch.
Jeff ‘Jihoz’ Zirlin:
Jeff Zirlin, co-founder of Axie Infinity, suffered a loss of over $9.7 million worth of Ether. Two of his addresses were hacked due to leaked keys, allowing the hacker to withdraw 3,248 ETH that was immediately converted using ‘tornado cash.’
The Alarming Surge in Stolen Funds
The recent surge in stolen funds is cause for concern within the crypto community. In 2023, the total value of stolen crypto funds amounted to approximately $342 million, representing a 25% reduction from the previous year. However, the high-profile hacks witnessed in the first two months of 2024 have already surpassed the total value of stolen funds in 2023.
Hot Take: Protecting Your Crypto Assets
The increase in hacks and scams highlights the importance of implementing robust security measures to protect your crypto assets. Here are some key steps you can take to safeguard your funds:
Use Strong Passwords:
- Create unique and complex passwords for all your crypto-related accounts.
- Consider using a password manager to securely store and generate strong passwords.
Enable Two-Factor Authentication (2FA):
- Enable 2FA wherever possible to add an extra layer of security to your accounts.
- Use authentication apps rather than SMS-based 2FA for enhanced protection.
Be Cautious of Phishing Attempts:
- Avoid clicking on suspicious links or providing personal information in response to unsolicited requests.
- Double-check the URLs of websites and ensure they are secure (https://) before entering sensitive information.
Keep Software Up to Date:
- Regularly update your operating system, web browsers, and crypto wallets to benefit from the latest security patches.
Store Funds in Secure Wallets:
- Use hardware wallets or other cold storage solutions to store the majority of your crypto assets offline.
- Avoid keeping large amounts of cryptocurrency on exchanges or online wallets.
By following these best practices, you can significantly reduce the risk of falling victim to hacks and scams within the crypto space. Stay vigilant and prioritize the security of your digital assets.
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