Crypto Industry Sees Major 71% Drop in Hacks for December 2024

Significant Decrease in Crypto Hacking Incidents: December 2024 Update

In a noteworthy development for the crypto industry, hacking incidents significantly decreased in December 2024, according to a recent report by ShibDaily and blockchain security firm PeckShield. The report indicated that there were only 25 hacks during the month, resulting in a loss of approximately $24.7 million. This represents an impressive 71% decline compared to the previous month, showcasing the continuous efforts to enhance security measures within the sector.

Targeted Sectors and Notable Breaches

The recent attacks primarily focused on decentralized finance (DeFi) platforms and exchanges, reflecting a trend that has alarmed industry stakeholders. Among the most significant breaches was the attack on the popular password manager service LastPass. This incident, which occurred on December 16 and 17, resulted in the theft of approximately $12.38 million in cryptocurrency. The breach was linked to a previous hack in 2022 and specifically targeted encrypted password vaults holding sensitive data from crypto wallet users.

Other Noteworthy Victims

Additionally, other platforms faced severe security breaches during this period. Yeifinance and GemPad each reported losses of around $2.2 million due to hacking incidents. These breaches underline the vulnerabilities prevalent in DeFi protocols and smart contract platforms.

Specific Attacks and Losses

Furthermore, the report highlighted a targeted draining attack on the Solana blockchain, which culminated in a loss of $2.2 million from a single user. The FEG Token project also experienced a significant breach when hackers exploited a vulnerability within the platform’s SmartBridge, resulting in a theft of approximately $1.3 million.

Tracing Stolen Funds

The stolen funds from various breaches have been traced through different transaction flows. Significant amounts of Ethereum, Circle’s stablecoin, and Bitcoin were transferred via platforms like ChangeNOW. Notably, some of the stolen assets were linked to multiple wallets using the sanctioned mixer Tornado Cash, indicating the ongoing challenges of tracking illicit activities within the crypto space.

Conclusion

Despite the decrease in hacking incidents, the crypto industry must remain vigilant against evolving threats. Continuous improvements in security protocols and awareness among users are paramount to safeguarding digital assets in this dynamic environment.