The crypto community did not have a great month in February, losing an astonishing $1.53 billion to hacks, scams, and exploits. The biggest loss came from the Bybit hack, where North Korea’s Lazarus Group made off with $1.4 billion, the biggest crypto heist ever. Even without this attack, losses still totaled $126 million, marking a 28.5% increase from January, according to blockchain security firm CertiK.
The FBI confirmed that North Korea was behind the Bybit hack, using advanced techniques to compromise a storage wallet. The stolen funds have since been divided across thousands of addresses across multiple blockchains. The hack helps to accentuate lingering security vulnerabilities within the crypto space, even as the crypto space shows enhanced resistance against cyberattacks.
Source: Infini
Further Big Crypto Hacks in February
Aside from the Bybit hack, some other exchanges lost a significant amount of money. The second-largest attack was at Infini, a stablecoin payments firm, where they lost $49 million on February 24. Investigations later revealed that the lead developer had not revoked admin privileges, meaning they could still redeem all of the vault tokens. Infini attempted to strike a deal with the hacker by proposing they take 20% of the looted assets in return for the hacker’s restitution of the rest of the assets. Thus far, they haven’t been heard from.
Another significant event was the April 12 ZkLend hacking, in which hackers made off with $10 million from the decentralized lending platform. Such incidents highlight how vulnerabilities in smart contract and admin controls can lead to humongous economic losses.
Emerging Threats and Security Implications
🚨 Crypto Hacks Near $1.5 Billion in 2024: Unveiling the Undying Security Threats 🚨
— 𝐞𝐫𝐚𝐠𝐨𝐭𝐡.𝐜𝐫𝐲𝐩𝐭𝐨 (@Vroxul) December 9, 2024
The stunning truth: Even as crypto matures, security risks loom large.
With $71 million stolen in November alone, 2024's total losses hit a staggering $1.48 billion.
Here’s what everyone in… pic.twitter.com/L2tqlPYWch
Thus, according to CertiK’s report, wallet hacks accounted for the most significant amount of losses in February, followed by code vulnerabilities that lost about $20 million, and phishing scams amassed around $1.8 million. It seems hackers are getting seriously smarter in finding security vulnerabilities, and it is becoming really hard for exchanges and protocols to safeguard user funds.
Even though crypto hacks had been decreasing heading into late 2024, the February spike in attacks serves to remind that hackers are always evolving. The sector requires new security protocols, improved smart contract audits, and more user education to avoid future losses. With billions on the line, enhanced security protocols will be required for crypto’s future.
