Recently, in 2024, the cryptocurrency industry is facing a situation where financial damage is rapidly increasing due to frequent cyber attacks such as hacking and rug pull. Blockchain security company Immunefi said 32 confirmed attacks resulted in losses exceeding $200 million in the first quarter of this year. This is a 15.4% increase compared to $173 million in the same period last year.
In February, a number of adverse events resulted in significant financial losses. A total of $67 million was extracted in 12 different incidents, almost half of the $133 million stolen in January. Another significant incident was the cyberattack on PlayDapp, one of the world’s leading cryptocurrency gaming platforms. The attack resulted in massive losses of $32.3 million. Another large-scale attack occurred on decentralized cryptocurrency exchange FixedFloat, allowing hackers to steal $26.1 million. This trend indicates that attackers are now increasingly focusing on DeFi platforms for such attacks, while centralized financial protocols are not as vulnerable.
As abuses escalate, Ethereum is highlighted as one of the most vulnerable targets. Unfortunately, there were only 12 attacks on the platform this year, accounting for over 85% of total losses. This clearly indicates the risks associated with DeFi platforms operating on Ethereum, as they are open and integrated, making them vulnerable to cyber attacks.
These breaches have occurred multiple times, indicating the importance of strengthening the security of cryptocurrency systems. To prevent such incidents, it is important that all parties involved have sufficient security measures and regular checks. This should include strengthening regulation and adopting appropriate standards in all relevant areas of operation to create a more stable and trustworthy environment for digital asset exchanges and platforms.
Nonetheless, the cryptocurrency market has shown significant levels of resistance despite the various challenges it faces. It is still growing as innovations in the sector attract more people to participate. However, these advances bring new challenges that the public must face with appropriate mindset and understanding. Therefore, industry members, regulators, and cybersecurity experts must jointly devise appropriate strategies to combat these threats.
Surprisingly, the neoliberal environment of cryptocurrencies does not limit exposure to cyber risks to the prospect of hacking and saboteurs. Crime also has deep roots. According to estimates, criminal activity in the sector resulted in as much as $1.8 billion being stolen in 2023 alone, with North Korea’s Lazarus Group responsible for 17% of these thefts. Incidents that year included over $200 million in losses on the Mixin Network and $197 million in fraud on the Euler Finance lending platform.
As cryptocurrency use grows globally, the number and sophistication of attacks against cryptocurrencies is also increasing. This requires frequent discussions about cybersecurity. In this way, all participants can strengthen the fundamental pillars of the cryptocurrency space and minimize the impact of malicious attacks by encouraging honesty, responsibility, and adaptability. To foster sustainable growth in this rapidly evolving area, it is important to develop strategies that strengthen security and set standards.