Cryptohacks surged in September 2024, with cybercriminals launching numerous attacks that led to over $120 million in losses across various platforms. These cyberattacks highlighted the ongoing vulnerabilities in the cryptocurrency space, particularly among centralized exchanges, emphasizing the need for stronger security measures in the industry.
Cryptohacks Damage
According to PeckShield, a company that tracks blockchain security, hackers carried out more than 20 different attacks in September. They stole a total of $120 million. This total does not even include a separate theft of $32.4 million involving a exposure in a system called $spWETH.
The biggest cryptohack came from the exchange BingX, which lost $44 million when hackers attacked its hot wallet on September 20. This attack drained various cryptocurrencies stored there. At first, people thought that the loss could be as high as $52 million.
Another platform, Penpie, was hit hard as well, losing $27 million on September 3. Attackers took advantage of a weakness in Penpie’s system that allowed them to exploit a feature called “registerPenpiePool.” This incident showed how skilled hackers are becoming.
Other platforms also suffered big losses. Indodax lost $21 million, DeltaPrime lost $5.98 million, and Truflation lost $5.6 million. Shezmu lost $4.9 million but managed to recover some of the stolen funds. Smaller hacks also affected Onyx ($3.8 million), BananaGun ($3 million), Bedrock ($1.75 million), and CUT ($1.4 million).
Cybersecurity Concerns Rise for the Cryptohacks
The $120 million lost in September reflects a bigger problem of rising cyber threats in the crypto industry. Looking at the whole year, a report from TRM labs said that hackers stole about $1.38 billion from the crypto world in the first half of 2024. This is a big jump from the same time last year when losses were $657 million.
Experts say that the rise in thefts is due to several reasons. Higher average token prices and more people using cryptocurrencies have played a part. The introduction of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in places like the United States and Hong Kong has also attracted more attention to the industry, making it more vulnerable to attacks.
Greg Johnson, the CEO of Rubicon Digital Assets, stressed that the crypto industry must improve its security measures. He pointed out that while the TRM Labs report was not surprising, it brought attention to the differences that persist.
Recovery Actions During the Cryptohacks
Not all news was bad in September. Some platforms worked to recover their stolen funds. For example, Shezmu managed to negotiate the return of some of its lost assets. Similarly, BananaGun, which lost $3 million, announced that it would refund affected traders, showing it cares about its users.
However, recovery is not the same for everyone. WazirX, an Indian cryptocurrency exchange, suffered a huge loss of $235 million from a hack in July. As of October 1, WazirX had not shared any plans to help the affected users, causing worry and frustration in the community. CoinSwitch, another exchange, even took legal action against WazirX to recover about $6.2 million in assets, showing the struggles in the industry.
A Reminder to Stay Alert
As September ends, the crypto community reflects on a month filled with lessons and losses. The drop in total losses compared to August suggests that hackers might be changing their tactics. However, the threat remains serious. Centralized exchanges are still major targets for cybercriminals, showing the need for stronger security and better preparation.
The crypto industry needs to take these attacks seriously and work to fix the weaknesses that have been revealed. Users are also reminded to be careful and vigilant in their trading and investment choices.
The future of the crypto space will depend on how exchanges, platforms, and users respond to these ongoing threats. Only time will tell if the lessons learned in September will lead to better security and a stronger crypto community. As the industry continues to grow, it must adapt to these challenges to ensure safety and success for everyone involved.
