The Rising Trend of Hacks and Criminality in the Crypto Industry

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In September, the crypto industry witnessed a surge in hacks and criminal activity, with the total worth of stolen cryptocurrencies amounting to approximately $332 million. Blockchain-analysedienst CertiK reported that exploits in blockchain protocols accounted for a significant portion of this, reaching $329.8 million. Exit scams and malicious flash loans were also sources of loss, albeit to a lesser extent, with $1.9 million and $0.4 million, respectively.

Exploits Leave a Hefty Dent in Crypto Holdings

Exploits, often characterized as security vulnerabilities in blockchain protocols, contributed greatly to the total losses. These vulnerabilities resulted in the theft of $329.8 million worth of cryptocurrencies in September alone. Though exit scams and fraudulent flash loans were responsible for a smaller part of these losses, amounting to $1.9 million and $0.4 million, respectively.

Noord-Koreaanse Hackergroep Lazarus Group Makes a Mark

Crypto research firm, Beosin, reports that the Noord-Koreaanse hackergroep, Lazarus Group, is one of the primary contributors to the losses in September. With successful hacks on Stake.com and CoinEx, the group managed to steal a staggering $41 million and $53 million, respectively.

Rising Crypto Theft in Q3

According to Beosin, in the third quarter of this year, the total losses from hacks, phishing scams, and rug pulls in the crypto world amounted to $889.26 million. Notably, these losses surpassed the combined sum of the first two quarters, which stood at $330 million in Q1 and $333 million in Q2.

The Prevalence of Hacking in the Crypto Industry

The year 2023 has witnessed an increasing trend in crypto hacking, with September setting a provisional record of $332 million in stolen cryptocurrencies. Although this amount may seem significant within the crypto industry, it pales in comparison to the $3.8 billion stolen in 2022. Additionally, as the year is not yet over, the figure for 2023 may continue to rise. Historically, the fourth quarter has been the most lucrative period for hackers. It is thus crucial to remain vigilant amidst fluctuating cryptocurrency prices.

Lessons from the Past

While the current state of cryptocurrency markets might suggest a decline in hacking attempts, it is important to remember that these incidents tend to increase during periods of declining prices. The year 2022 saw a surge in hacks coinciding with a sharp decline in cryptocurrency valuations. Therefore, it is paramount for individuals and organizations in the crypto world to prioritize cybersecurity efforts and remain proactive in protecting their assets.

Conclusion

The crypto industry continues to experience a rise in hacks and criminal activities. September marked a significant milestone with $332 million worth of cryptocurrencies stolen, primarily due to exploits in blockchain protocols. The Noord-Koreaanse hackergroep, Lazarus Group, emerged as a prominent source of these losses. However, it is essential to remain aware that the year is not yet over, and history has shown that the fourth quarter tends to be particularly vulnerable to hacking attempts. Therefore, constant vigilance and robust cybersecurity measures are necessary to safeguard against crypto theft.