The hackers involved in these attacks often used crypto mixers like Tornado Cash to obscure the origins of the stolen funds and evade detection.
In July, the crypto industry faced a significant security crisis, with hackers stealing an estimated $266 million across 16 different hacks. This surge in losses highlights a troubling trend in the sector, contrasting sharply with the $176 million reported in June.
WazirX Hit Hard
One of the most severe incidents occurred on July 18, when the Indian crypto exchange WazirX experienced a major breach. This attack resulted in a loss of over $230 million, accounting for about 86.4% of the month’s total losses. Investigators have linked the attack to North Korean hackers, known for their sophisticated techniques. As of August 1, blockchain investigation firm PeckShield reports that the stolen funds, amounting to 61,154 Ether (ETH), are still controlled by the attackers.
Several other attacks also impacted the cryptocurrency world in July. Compound Finance, an algorithmic protocol, lost $24 million, while the bridging protocol Li.Fi was hit with a $10 million loss. Additionally, both the decentralized AI protocol Bittensor and liquidity provider Rho Markets suffered $8 million in losses each.
On July 31, the Terra blockchain experienced a temporary halt due to a hack that drained $6 million. The Terra team acted swiftly by implementing an emergency blockchain upgrade and restoring normal operations within the same day.
Year-to-Date Overview and Trends
According to Immunefi, a Web3 security platform, the total losses from hacks and scams in the cryptocurrency sector have now exceeded $1.19 billion for the year. This figure represents a 16.3% increase compared to the same period in 2023.
July’s losses were the second-highest monthly total of 2024, trailing only behind May’s $358 million. Centralized finance (CeFi) breaches were particularly notable, accounting for nearly 99% of July’s total losses, with only 1.1% coming from frauds, scams, and rug pulls. Ethereum and BNB Chain were the most targeted networks, with Ethereum facing the most attacks. Immunefi recently surpassed $100 million in payouts to ethical hackers, highlighting its role in safeguarding blockchain systems.
The increase in cyberattacks signals the ongoing need for stronger security measures within the cryptocurrency industry to protect against future threats.
Tornado Cash Deposits Spike amid Rising Hacks
The hackers involved in these attacks often used crypto mixers like Tornado Cash to obscure the origins of the stolen funds and evade detection. Tornado Cash, a major crypto-mixing protocol, has rebounded in 2024, with deposits exceeding $1.8 billion in the first half of the year.
Despite sanctions by the US government, the protocol remains a key player in privacy-focused transactions by pooling funds to obscure their origins. The decentralized nature of Tornado Cash makes it difficult for authorities to effectively monitor, allowing it to attract substantial inflows, including from hackers involved in major thefts.
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