The cryptocurrency ecosystem witnessed a surge in hacking incidents in July, resulting in losses exceeding $266 million. This marks a significant increase from the $176 million stolen in June. The latest reports reveal a growing trend of sophisticated cyberattacks targeting both centralized and decentralized finance platforms.
WazirX Hack and Subsequent Actions
The most significant incident occurred on July 18, when the Indian crypto exchange WazirX suffered a catastrophic security breach. Hackers siphoned off over $230 million, which accounted for 86.4% of the total cryptocurrency stolen in the month. The stolen assets included 61,154 Ether (ETH). Following the attack, WazirX filed a police complaint and engaged with the Indian Computer Emergency Response Team (CERT-In). The exchange is collaborating with forensic experts and law enforcement agencies to track the stolen funds, recover customer assets, and identify the perpetrators. In addition, WazirX launched a recovery plan allowing users immediate access to 55% of their assets.
Other Major Incidents
In addition to WazirX, other significant victims included the decentralized finance platform Compound Finance, which lost $24 million, and the bridging protocol LI.FI, which lost $10 million. Smaller incidents also affected Bittensor and Rho Markets, with each losing $8 million. These funds were often laundered through crypto mixers like Tornado Cash, making them difficult to trace.
On July 31, the Terra blockchain experienced a reentrancy attack, resulting in the theft of $4 million in various tokens, including 60 million ASTRO, 3.5 million USDC, 500,000 USDT, and 2.7 Bitcoin. The attack exploited a known vulnerability that had resurfaced after a recent update. Terra developers responded by temporarily halting the blockchain at block height 11430400 and implementing an emergency chain upgrade. Validators supporting the network upgraded their nodes to prevent similar incidents in the future.
Terra Blockchain Halts After Security Breach Results in $5.28 Million LossWider Context of Cryptocurrency Thefts in 2024
The recent surge in hacks reflects a broader trend observed throughout the first half of 2024. According to blockchain intelligence firm TRM Labs, total cryptocurrency thefts reached $1.38 billion by June 24, more than double the $657 million recorded in the same period in 2023. The increase in thefts correlates with rising crypto prices, making digital assets a more lucrative target for cybercriminals. Key attack vectors include private key and seed phrase compromises, smart contract exploits, and flash loan attacks.
