• 24 June, 2024
News

Crypto Industry Scrambles for Robust Measures as Heists Top $11 Billion

According to a recent blog post by the cybersecurity website Comparitech, the world of cryptocurrency has experienced both successes and challenges. Despite the increasing value and creative uses of digital currencies, the issue of security breaches and thefts remains a persistent concern. Reportedly, over $11 billion worth of cryptocurrency has been stolen to date. 

Hackers have become increasingly sophisticated in their attacks, resulting in billions of dollars being stolen and a loss of trust in these digital assets. But the numbers alone fail to capture the human cost and the chilling audacity of these crimes. 

Firstly in the context of Axie Infinity’s Ronin Network, a staggering $620 million siphoned off, making it the all-time king of crypto heists. Hackers exploited vulnerabilities in the platform used for the popular play-to-earn game Axie Infinity.

The Comparitech research noted that a hacker stole a whopping $610 million from Poly Network but then, in a surprising act of conscience, returned most of it. Binance, the world’s largest crypto exchange wasn’t spared either, suffering a $570 million hack. While some funds were frozen, a significant portion vanished.

Source: Comparitech

A recent report by blockchain platform Whale Alert sent shockwaves through the crypto community, claiming a colossal $147 billion worth of XRP had been transferred to Binance and Bitfinex. However, the alarm was quickly silenced as the claim was retracted and deemed erroneous.

The blog also pointed out that a $547 million heist from Coincheck, the Japanese exchange, exposed the dangers of storing large amounts of cryptocurrency in online “hot wallets.” Also, MT Gox, in a multi-year saga, saw a staggering $470 million worth of Bitcoin stolen, highlighting the early vulnerabilities of the industry.

Hackers employ a diverse arsenal of tactics, from exploiting platform weaknesses to manipulating flash loans and targeting individual wallets. Every new breach exposes fresh security gaps, demanding constant vigilance and adaptation from the industry.

Source: Comparitech

As the number of crypto heists increases, cybersecurity firm Comparitech is calling for immediate action to be taken to ensure the safety of users’ digital assets. To achieve this, exchanges and platforms should prioritize the implementation of secure storage solutions, conduct thorough code audits, and adopt best practices for user authentication and authorization. Regulators also have a crucial role to play in establishing clear guidelines and enforcing standards to prevent further breaches.

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