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Ethereum, Bitcoin, XRP Cause $1.5 Billion Losses Due to Cryptocurrency Scams
The first half of 2024 was marked by a wave of large-scale cyber attacks in the cryptocurrency industry. Ethereum (ETH)Bitcoin (BTC) and XRP led cryptocurrency scam losses by more than $1.5 billion. This year, more than 200 significant incidents have caused losses of approximately $1.56 billion.
Cryptocurrency Scam Losses Reach $1.5 Billion
According to data from Peck Shield Alert, only $319 million of lost crypto funds have been recovered. Furthermore, this year’s losses represent a staggering 293% increase compared to the same period in 2023, when losses amounted to $480 million.
Additionally, DeFi protocols have been the main targets of hackers. They account for 59% of the total stolen value. Over 20 public chains have suffered major hacks during this period. Additionally, Ethereum, Bitcoin, and XRP top the list for the amount lost through cryptocurrency hacks.
Additionally, Ethereum and BNB Chain were the most frequently targeted, each accounting for 31.3% of the total hacks. Meanwhile, Arbitrum followed with 12.5% of the attacks. One of the most notable incidents occurred on June 3, 2024.
DMM Bitcoina major Japanese cryptocurrency exchange, reported a substantial breach. The attackers stole 4,502.9 BTC, worth over $300 million at the time. This incident highlighted vulnerabilities within exchanges, especially those that handle large volumes of digital assets.
Read also: XRP News: Whale Moves 63 Million Coins as Ripple Strengthens Case
Major XRP, ETH, BTC Hacks
A week after the Bitcoin DMM attack, on June 10, UwU lendsa decentralized finance (DeFi) lending protocol, has been compromised. The breach resulted in the loss of approximately $19.3 million in digital assets. The hack highlights the ongoing risks associated with DeFi platforms, which often operate with less regulatory oversight. The platform has since offered a $5 million reward for catching the hacker.
Earlier this year, on February 3, 2024, Chris Larsen, co-founder of Ripple, confirmed a major security breach involving his personal wallets. Initially, there were rumors that Ripple itself had been targeted. However, Larsen clarified that the hack involved his digital wallets and not Ripple’s corporate assets.
The hackers managed to transfer a whopping 213 million XRP tokens, worth approximately $112.5 million. Additionally, on-chain detective ZachXBT first alerted the community to the suspicious transactions. In response to the theft, Larsen and various cryptocurrency exchanges quickly took steps to mitigate the impact.
Several exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC, have collaborated to freeze a significant portion of the stolen funds. Binance alone has frozen $4.2 million worth of XRP to aid in the investigation.
Additionally, on April 2, 2024, FixedFloat, a Bitcoin Lightning-based exchange, suffered a security breach. Unauthorized transactions led to financial losses of over $3 million. This incident highlighted recurring security concerns for FixedFloat, following a similar breach earlier in the year.
The company has also faced significant challenges in securing its platform from repeated attacks. Additionally, in February, hackers stole $26 million in Ethereum and Bitcoin from FixedFloat. These digital assets were then dumped on exchanges to make profits.
Read also: Ethereum Surpasses Bitcoin 2X in Network Fee Revenue, Thanks to Layer-2
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Kritika has over 2 years of experience in the financial news industry. Currently working as a crypto journalist at Coingape, she has consistently demonstrated a flair for blockchain technology and cryptocurrencies. Kritika combines in-depth analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the cryptocurrency space.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your own market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.