The cryptocurrency industry experienced significant losses in August 2024, with more than $313.86 million in digital assets stolen in over 10 cyberattacks. These hacks have raised concerns regarding the security and broader acceptance of the asset class.

Phishing Attacks Dominate the Hacks

According to blockchain security firm PeckShield, phishing attacks were responsible for 93.5% of the stolen funds, which amounted to $293.4 million. Among the top five hacks, two major phishing attacks drained $238 million in Bitcoin and $55.4 million worth of Dai, making these the most severe incidents in August.

In addition to phishing attacks, other notable exploits in August include the Ronin Network hack, which involved unauthorized crypto transactions worth $5.1 million, although $12 million was recovered from the hacker. Decentralized finance protocol Nexera also fell victim to a smart contract exploit, resulting in $1.83 million in losses.

Broader Industry Concerns: Over $1 Billion Lost YTD

An August 29 report by Immunefi revealed that the cryptocurrency industry has lost approximately $1.21 billion to hacks and rug pulls so far in 2024. The July hack of India’s WazirX exchange was one of the largest incidents of the year, with $234.9 million stolen from a multisig wallet. WazirX is currently undergoing restructuring to restore its financial operations and is pursuing legal proceedings in Singapore.

In response to the growing number of cyberattacks, a team of ethical hackers formed the Security Alliance (SEAL) in August 2023, with a mission to strengthen defenses across the crypto industry. Led by Paradigm researcher Samczsun, the team has received over 900 hack-related reports. However, despite their efforts, Immunefi reported that nearly 80% of cryptocurrencies never regain their value after an exploit, inflicting further damage on the affected projects.

The sharp rise in cyberattacks in August highlights the ongoing vulnerabilities in the cryptocurrency space. As hackers become increasingly sophisticated, the industry must adapt and strengthen its defenses to prevent further financial losses.