WazirX Suffers $230M Loss in Crypto Hacks Surge Led by North Korea’s Lazarus Group

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The crypto sphere has been facing several severe hacking incidents recently.
In July 2024, there was a notable spike in security breaches, as highlighted by PeckShield.
One of the most shocking incidents involved WazirX, a prominent Indian centralized crypto exchange, losing a colossal $230 million.

Discover the escalating trend of crypto hacks, with a detailed look at the significant incidents and their implications for the industry.

Major Hacking Incidents in July 2024

PeckShield reported a stark increase in crypto-related security breaches for July 2024, totaling 16 incidents that led to losses of approximately $266 million. The most devastating attack targeted WazirX, resulting in a $230 million theft. This attack was reportedly executed by the Lazarus Group, which utilized crypto-mixing services like Tornado Cash to launder the stolen funds.

Details on WazirX Hack

The $230 million loss suffered by WazirX stands out as the most substantial single breach. The exchange responded by halting its operations and offering a $23 million bounty as an incentive for the attackers to return the stolen cryptocurrencies. Additionally, WazirX proposed a “socialized loss strategy” to distribute the financial impact evenly across all its users.

Additional Noteworthy Incidents

Following the WazirX breach, other platforms also experienced significant security incidents. Compound, an algorithmic protocol, faced a governance attack with potential losses amounting to $24 million. Bridging protocol LI.FI and decentralized AI protocol Bittensor also fell victim to hacks, resulting in losses of $9.73 million and $8 million, respectively.

Other Affected Platforms

Several other cryptocurrency platforms were also affected by hacks. Liquidity provider RhoMarkets and decentralized lending platform DeltaPrime experienced breaches amounting to $7.6 million and $1 million, respectively. Both platforms, however, managed to recover a substantial portion of their lost funds. Terra suffered a $4 million breach, while DoughFina, Minterest, and MonoSwap faced losses of $1.86 million, $1.4 million, and $1.3 million, respectively.

The Role of Tornado Cash

It’s crucial to note that most hackers transferred the stolen cryptocurrencies to Tornado Cash, a crypto-mixing service, to obscure their digital trails and avoid detection. This tool has been commonly used in multiple high-profile hacking incidents, raising concerns about its role in aiding cybercriminals.

Trends in Crypto Security Breaches

Besides the breaches, the industry also witnessed exit scams resulting in nearly $3 million in losses, as reported by another significant blockchain security firm, CertiK. Interestingly, June 2024 saw fewer hacking incidents, but the total loss was still considerable at $176 million spread across 20 cases.

Conclusion

The persistent wave of hacking incidents in the cryptocurrency ecosystem underscores the critical need for enhanced security measures and vigilance. As the industry continues to evolve, securing digital assets against such threats remains of paramount importance. Stakeholders must collaborate to mitigate these risks and maintain trust in the burgeoning crypto landscape.

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