Cryptocurrency Industry Faces Security Crisis in July 2024
In July 2024, the cryptocurrency industry experienced a severe security crisis with hackers carrying out 16 major breaches, resulting in the theft of approximately $266 million in assets. This surge in thefts signals a troubling trend, with the number of cases in July surpassing the losses seen in the previous month, which totaled $176 million.
Major Breaches and Victims
One of the most notable attacks occurred on July 18, when the Indian cryptocurrency exchange WazirX was breached, leading to losses exceeding $230 million, accounting for 86.4% of the total losses for the month. Investigations suggest that North Korean cybercriminals may be responsible for this significant hacking incident.
Other prominent victims in July included Compound Finance (loss of $24 million), Li.Fi bridging protocol (loss of $10 million), Bittensor decentralized AI protocol (loss of $8 million), and Rho Markets liquidity provider (loss of $8 million).
Terra Blockchain Faces $6 Million Hacker Attack
At the end of July, the Terra blockchain fell victim to a major security breach. Hackers exploited known vulnerabilities, resulting in the theft of 60 million ASTRO tokens, $500,000, $3.5 million in coins, and 2.7 Bitcoins, amounting to a total loss of $6 million. As a response, Terra temporarily suspended operations and conducted an emergency chain upgrade to mitigate future vulnerabilities.
Despite the surge in hacks and scams, the overall recovery rate of stolen funds in the cryptocurrency market reached a record high of 77% in the second quarter of 2024. This indicates a positive trend in recovering lost assets, providing a glimmer of hope amid the alarming rates of theft.
While the cryptocurrency market has demonstrated resilience in the face of these security challenges, the need for enhanced security measures and heightened vigilance within the industry remains critical to combat ongoing threats.
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