Cumulative losses from cryptocurrency hacks exceeded $120 million in September 2024, making it the second-lowest monthly loss from hacks this year, following April. Centralized exchanges remain prime targets for hackers, leading to substantial losses month after month.
Major Losses in September
According to blockchain investigation firm Peckshield, the total losses for the month amounted to $120.23 million, which were spread across more than 20 separate hacks. Notably, the exchanges BingX and Indodax accounted for more than half of these losses, highlighting the ongoing vulnerability of centralized exchanges in the crypto ecosystem.
September witnessed a significant decrease in losses from hacks, with a 61.7% drop compared to August, when nearly $314 million was lost across the crypto space. Among the exchanges affected in September, BingX recorded the highest loss at $44 million, while Indodax suffered a loss of $21 million.
Impact on Decentralized Entities
In addition to centralized exchanges, several decentralized entities were also affected by hacks during the month. The decentralized finance (DeFi) protocol Penpie experienced a major exploit, resulting in a loss of $27 million. Other notable DeFi hacks included:
- Delta Prime: $6 million
- Truflation: $5.6 million
- Bedrock: $2 million
Crypto lender Shezmu was initially hacked for $5 million but managed to recover a portion of the stolen funds through on-chain negotiations with the hacker. In a related note, the Telegram bot Banana Gun announced a refund to affected crypto traders after it was hacked for $3 million.
WazirX Faces Fallout from Largest Hack of 2024
As of October 1, Indian crypto exchange WazirX remains the largest victim of a significant hack in 2024. On July 18, WazirX lost a staggering $235 million when one of its Safe Multisig wallets on Ethereum was compromised. Following this breach, the exchange suspended all crypto and cash withdrawals to conduct a thorough internal investigation.
Three months later, WazirX has yet to announce any remediation plans to compensate the affected users, raising concerns about its accountability. The exchange’s handling of the situation has left many users dissatisfied, particularly given the magnitude of the losses.
In a recent turn of events, rival crypto exchange CoinSwitch initiated legal action against WazirX to recover 2% of its assets, valued at approximately $6.2 million. Despite its ongoing fund-recovery efforts, WazirX disclosed that 43% of customer funds were irrevocably lost due to the hack, highlighting the severe impact on its user base.
The continuing trend of hacks in the cryptocurrency space underscores the persistent vulnerabilities faced by centralized exchanges. As more users flock to crypto trading platforms, the risks associated with security breaches become increasingly pronounced.
This wave of hacks raises critical questions about the efficacy of existing security measures and regulatory frameworks within the industry. Many exchanges have been urged to bolster their security protocols and take more robust steps to protect user assets.
September’s hacks exceeding $120 million signify a troubling trend within the cryptocurrency market, particularly for centralized exchanges. As the industry continues to evolve, the need for enhanced security measures and greater accountability becomes increasingly urgent. The ongoing fallout from high-profile hacks like that of WazirX illustrates the potential consequences of inadequate security practices, underscoring the importance of building trust within the crypto community.
| Aspect | Details |
|---|---|
| Total Losses in September | $120.23 million |
| Notable Hacks | Over 20 separate incidents |
| Major Affected Exchanges | BingX ($44 million), Indodax ($21 million) |
| DeFi Protocols Affected | Penpie ($27 million), Delta Prime ($6 million), Truflation ($5.6 million), Bedrock ($2 million) |
| WazirX Hack Amount | $235 million |
| Legal Action Against WazirX | CoinSwitch suing for 2% of assets (~$6.2 million) |
| Customer Funds Lost | 43% irrevocably lost |
As the cryptocurrency landscape continues to face challenges from hacking incidents, the implications for users and the industry as a whole will be significant moving forward.
Featured image credit: catalyststuff via Freepik
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