Late October 2023 witnessed a significant resurgence in the crypto market, led by Bitcoin (BTC). This rally resulted in a surge of interest and various coins and tokens reaching new highs. The increased attention on the industry is evident in a recent Grayscale poll, which found that 70% of U.S. voters desire a president who is knowledgeable about blockchain and other innovative technologies.
However, with the rise in traffic, there has also been an increase in crypto hacks and scams. Institutions like Lloyds Bank have issued warnings about common types of crypto fraud. Despite the market’s recovery, illicit activities in the crypto space have persisted.
Let’s take a look at some high-profile cases from each quarter of 2023:
Euler Finance Hack (March):
In March, the Euler Finance flash loan attack became the biggest crypto hack of the year. The attacker exploited a liquidity issue in the DonateToReserve function, stealing around $197 million worth of assets. Surprisingly, the attacker, known as Jacob, not only apologized but also returned the stolen assets.
Multichain Hack (July):
The Multichain attack was another significant hack that resulted in unauthorized withdrawals totaling $125 million. The attacker targeted the cross-chain bridge protocol and stole various cryptocurrencies such as USDC, DOGE, USDT, wBTC, and wETH. Unfortunately, Multichain later announced its shutdown due to these events.
Stake.com Casino Hack (September):
In September, online crypto casino Stake.com fell victim to a hack that drained wallets holding $41 million worth of assets. The attackers, potentially North Korea’s Lazarus Group according to an FBI report, targeted wallets belonging to the casino and took cryptocurrencies including ETH, MATIC, and BNB.
Ledger Supply Chain Attack (December):
The Ledger Connect Kit attack occurred on December 14 and drew significant attention. The attacker exploited malicious code injected into Ledger Connect Kit v1.1.7 library, resulting in the draining of user wallets. SushiSwap, Zapper, and Revoke.cash were among the compromised platforms, with approximately $600,000 in assets lost. Ledger took swift action to prevent further damage and promised to compensate affected users, address the vulnerabilities, and enhance overall security.
Despite the crypto market’s recovery and growing interest from the public, it is essential to remain vigilant against hacking attempts and scams. It is crucial to stay informed about potential risks and take necessary precautions when engaging with cryptocurrencies.
Hot Take: Crypto Market Resurgence Brings Increased Hacking Risks
As the crypto market experiences a resurgence, reaching new highs and gaining public attention, it also attracts hackers and scammers looking to exploit vulnerabilities. The past year witnessed several high-profile hacks that resulted in significant losses of assets. While some cases had positive outcomes with stolen funds being returned, others ended in permanent damage or even the closure of platforms. These incidents serve as a reminder of the importance of robust security measures within the crypto space. As an investor or participant in the crypto market, it is crucial to stay informed about potential risks and take proactive steps to protect your assets and personal information.
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