Top Cryptocurrency Hacks of the Past Month!
One of the significant hurdles to the widespread acceptance of digital currencies has been hacking. High-profile thefts from various cryptocurrency exchanges and platforms have often discouraged potential investors from using these systems.
Despite claims of robust security by blockchain projects, historical attacks revealed vulnerabilities. In 2023, over $1.7 billion worth of cryptocurrency was stolen, following an even higher figure of $3.8 billion in 2022, according to the blockchain analysis firm Chainalysis.
The first major hack in the cryptocurrency world occurred with Mt. Gox, which at the time lost approximately 7% of all bitcoins in circulation. This event set a precedent and highlighted the vulnerabilities in cryptocurrency exchanges.
Recent Exploits
Poly Network Exploit
On August 12, Poly Network had to temporarily suspend its cross-chain bridging services for Neo N3 due to an exploit targeting its Cross-Chain Management Contract. The hacker managed to exploit the Poly Network’s system, absconding with around $4 to $5 million. This theft represented about 20% to 25% of all Poly Network cross-chain assets.
As a result, the value of unwrapped assets decreased to approximately 75% to 80% of their wrapped versions. Despite a bounty offered, the hacker did not return the stolen funds, prompting the Flamingo team to initiate the Asset Support Initiative to mitigate the losses for affected asset holders.
NXRA Token Theft
On August 7, a blockchain security firm, Cyvers, reported an exploit involving Nexera’s proxy contract. An unidentified address had taken control of the contract and used administrative functions to transfer all NXRA tokens out. The stolen tokens were quickly converted to Ethereum (ETH), with some funds being bridged to the Binance Smart Chain (BNB). This incident led to a 43% drop in the value of the NXRA token.
Ronin Network Bridge Hack
On August 6, 2024, the Ronin Network bridge experienced a hack that compromised approximately $12 million in Ethereum (ETH) and USD Coin (USDC). This incident followed a previous major hack in March 2022, which resulted in the theft of $600 million. Two suspicious transactions were detected: one involving the movement of 3,996 ETH and the other nearly 2 million USDC tokens. The Ronin Network faced ongoing challenges in securing its infrastructure.
Terra Chain Exploit
On July 31, 2024, the Terra Luna chain encountered a significant exploit. The network temporarily halted operations at block height 11430400 due to a suspected attack. This incident resulted in the loss of over $5 million in assets, including USDC and Astroport tokens, attributed to the lack of an effective security patch.
Lessons for Investors
The repeated incidents of hacking highlighted critical safety rules for long-term cryptocurrency investors. Keeping cryptocurrencies offline when not actively trading or spending them and avoiding custodial accounts unless they offer insurance were essential practices to mitigate risks.
Overall, these hacking events underscored the ongoing challenges in securing digital assets and the need for improved security measures within the cryptocurrency industry.
