Losses from crypto project hacks rose by 51% in a month
The incidents resulted in a loss of $266 million
01.08.2024 - 09:05
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Last updated on Aug 6, 2024
What’s new? In July, hackers launched 16 successful attacks on crypto projects with a total damage of $266 million. According to cyber security company PeckShield, the figure was up by 51% compared to the previous month. The largest incident was the $230 million hack of the centralized (CEX) Indian crypto exchange WazirX.
What else is known? PeckShield experts noted that the total did not take into account an attack on the management of the Compound lending protocol. Thus, at the end of July, the Golden Boys group, thanks to their ownership of a large number of COMP governance tokens, voted to bring $24 million worth of treasury coins under their control.
Other members of the Compound community had voted against and had previously rejected such an initiative multiple times, but the purchase of additional COMP allowed Golden Boys to gain an advantage in the vote. The group intended to launch a wrapped goldCOMP token and store the collateral in its own multi-signature wallet.
However, negotiations with the community later resulted in the group abandoning the initiative. Compound offered an alternative that does not jeopardize the project’s governance mechanism.
Cyvers: 70% of crypto hack losses are CeFi projects
Centralized platforms also account for a similar share of the total number of exploits
The next largest hack of July, according to PeckShield, was a $9,3 million exploit of the smart contract of the Li.Fi multi-chain protocol. Also in the top three incidents was an $8 million hack of Bittensor AI-based P2P protocol wallets.
Next comes the Rho lending protocol on the L2 network Scroll. The project lost $7,6 million in several networks as a result of the attack USDT and USDC pools were affected. The attacker later claimed to have capitalized on a misconfigured price oracle with the help of an MEV bot and returned the funds to users.
The Terra blockchain lost $4 million as a result of the exploit. An attacker exploited a vulnerability in the third-party IBC hooks module to output the value of USDC and ASTRO-wrapped coins.
DeFi protocol Dough Finance lost $1,86 million in a flash loan attack. The same method was used by a hacker of the Minterest lending protocol, earning $1,4 million.
The lucrative MonoSwap protocol was hacked for $1,3 million after one of its developers installed a phishing application during a call with a hacker posing as a venture capitalist.
Rounding out the top ten incidents is DeltaPrime liquidity protocol, it lost $1 million and was later able to recover $900 000.
According to PeckShield, some of the funds from the hacks were channeled by the hackers into the Tornado Cash crypto mixer, which has been under US sanctions since August 2022.
In July, Chainalysis experts reported that despite the sanctions, the volume of Tornado Cash deposits in the first half of 2024 was double the result for the whole of last year.
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