In a troubling development for the cryptocurrency market, hackers stole over $313.86 million in digital assets across more than 10 cyberattacks in August 2024, raising significant concerns about the safety and acceptance of cryptocurrencies. Blockchain security firm PeckShield revealed that phishing attacks were the leading cause, accounting for 93.5% of the total losses, or approximately $293.4 million.
The month’s top five incidents included two major phishing attacks that drained $238 million in Bitcoin and $55.4 million worth of Dai. Additionally, the Ronin Network suffered unauthorized transactions worth $5.1 million, although $12 million was later recovered. Decentralized finance protocol Nexera lost $1.83 million due to a smart contract exploit.
The August surge in hacking incidents adds to an alarming trend in the crypto industry, which has seen $1.21 billion in digital assets lost to hacks and rug pulls in 2024, according to an Immunefi report. Notably, WazirX, a prominent Indian crypto exchange, faced one of the year’s largest attacks in July, losing $234.9 million from a multisig wallet. The exchange is currently pursuing legal actions in Singapore as part of its efforts to recover and restructure.
In response to these mounting threats, a team of ethical hackers has united to protect the industry. Led by white hat hacker Samczsun, the Security Alliance (SEAL) was formed in August 2023 to strengthen defenses against cyberattacks. Since its inception, SEAL has handled over 900 hack-related incidents.
The growing frequency and severity of these cyberattacks underscore a harsh reality: nearly 80% of affected cryptocurrencies never regain their value post-exploit, resulting in further damage beyond the immediate financial loss.