Imagine waking up to find your crypto exchange account drained! In May 2024, the cryptocurrency world was rocked by a surge in hacking. Nearly 30 incidents saw a staggering $574.6 million vanish, according to blockchain analytics firm Peckshield.
This alarming figure represents a staggering 666% increase from the $385 million stolen in April 2024. A significant portion of these stolen funds was laundered through Tornado Cash, a platform that conceals sender information, making it a favorite tool for cybercriminals.
Want to know how hackers pulled it off? Read on…
Tornado Cash: The Cybercriminals’ Mixer of Choice
Tornado Cash is designed to enhance transaction anonymity by mixing deposits and distributing them to various addresses, making it incredibly challenging to trace the origins of the funds. This mechanism is why cybercriminals favor it for laundering stolen cryptocurrencies into real money.
Recently, U.S. authorities sanctioned Tornado Cash, and its founder, Roman, has been sentenced to long-term imprisonment for laundering billions in crypto.
Top Five Hacks in May 2024
1. DMM Bitcoin: $305 Million
The largest hack of the month targeted Japanese digital currency trader DMM Bitcoin. Hackers exploited vulnerabilities to steal 4,502 BTC, worth $305 million, marking one of the most significant heists in centralized exchange history.
2. Gala Games: $212 Million
Blockchain gaming firm Gala Games suffered a massive loss of $212 million due to a sophisticated exploit. Cybercriminals managed to make off with $22 million in profits before most of the stolen funds were recovered.
3. Sonne Finance: $20 Million
Sonne Finance was hit by a complex flash loan attack and defrauded for $20 million. The platform is actively involved in issuing assets back and has already improved its security approach to prevent such attacks.
4. Coinbase Account Drainer: $18 Million.
Coinbase users fell victim to account break-ins, with attackers siphoning off $18 million through phishing tactics. This incident underscores the need for stronger account protection measures.
5. A Whale: $8. 2 Million
A single whale with a significant amount of cryptocurrencies was frivolously attacked, and $8. 2 million was lost. The work being done to track down the stolen money has helped clarify further details about this particular attack.
Stay Safe Out There!
For these threats to be dealt with, cybersecurity firms and cryptocurrency exchanges should start using more secure methods of protecting the data through encryption, using more than one kind of authentication and real-time monitoring to detect intrusion cases.
For users to enhance their safety, having hardware wallets for storing cryptocurrencies, carrying out a two-factor authentication process, and being on the lookout for phishing scams might help.
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