In a depressing month for the Bitcoin sector, hackers pilfers an amazing $313.86 million in digital assets in more than ten events. This raised more issues regarding the security and viability of cryptocurrencies as the main sort of asset.
The great majority of these losses 93.5% of all the money stolen are attributed to hacking assaults, according PeckShield, a blockchain security business. Just two extremely large hacking events resulted in theft of $238 million in Bitcoin and $55.4 million in Dai, therefore totalling $293.4 million.
Attack on the Ronin Network constituted one of the largest breaches in August. The network retrieved $12 million, however without authorization $5.1 million worth of crypto activity was still conducted. Additionally attacked was the Nexera distributed banking system, resulting in a smart contract exploit loss of $1.83 million.
These incidents add to the already rising loss count in 2024. Based on an August 29 Immunefi analysis, hacks and rug pulls have already lost the cryptocurrency industry $1.21 billion in digital assets this year alone.
Crypto Security Flaws Raise Concerns About Future Stability
The continuous security flaws in cryptocurrencies generate a lot of actual concerns regarding their future. Such kinds of leaks erode investor confidence and trust.
One of the largest thefts of 2024 hit India’s WazirX bitcoin exchange; $234.9 million was taken from one of its multisig accounts. Currently working on a gradual approach to restore its financial activities, the exchange is Along with reorganizing, it is suing in Singapore as part of its initiatives.
Because of the growing number of hacks, a group of good hackers have come together to keep the industry from losing more money. In August 2023, the Security Alliance (SEAL), a top-level group led by famous “white hat” hacker and Paradigm expert Samczsun, was created.
Since it began, SEAL has worked on more than 900 hack-related tickets to improve security and stop future leaks.
Even so, an Immunefi study from August 22 shows that almost 80% of cryptocurrencies never get their value back after being hacked or used fraudulently. The Bitcoin industry already has a lot of problems, and this loss of value often does more harm to the projects that were hacked than the hacks themselves.
Though these attacks are becoming more sophisticated and larger, the industry’s capacity to safeguard digital assets is still under much observation. By implementing more robust security policies and enlisting the assistance of ethical hackers like those in SEAL, we may be greatly safeguarding the direction of digital banking.
