<p>During February 2024, the cryptocurrency industry suffered significant losses, totaling approximately $67 million across 12 specific incidents. Comparatively, January 2024 witnessed<a href="https://tradedog.io/67-million-lost-to-crypto-hacks-in-february-2024/" rel="noopener noreferrer nofollow"> losses</a> totaling around $133 million, almost twice the amount incurred in February.</p><p>Analyzing the distribution of these losses provides insights into prevalent threats within the ecosystem. The majority of losses stemmed from hacking incidents, comprising 97.54% of the total, while fraudulent activities accounted for only 2.46%. This distribution underscores the persistent challenge posed by hacking in the crypto space, with fraud incidents representing a relatively minor portion of overall losses. Hacking continues to dominate as the primary cause of crypto losses, with fraudulent activities having a comparatively low impact.</p><h2 id="header-0">Notable Hacks in February 2024</h2><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/007397cc6f844f3b92f07759a82112fd.jpg" /><p>In February 2024, the cryptocurrency landscape was rocked by significant hacking incidents.</p><ol><li><strong>PlayDapp</strong> ($32 Million Loss) PlayDapp, a blockchain gaming platform, fell victim to a severe hack in February 2024. The attack exploited an access control vulnerability within one of the main wallets controlling PlayDapp’s smart contracts. The attacker obtained the private key, granting unauthorized privileges and adding themselves as authorized miners for the platform’s token (PLA). This allowed them to create new PLA tokens at will and transfer them to their wallet, effectively stealing funds. PlayDapp responded promptly to contain the breach.</li><li><strong>FixedFloat</strong> ($26 Million Loss) FixedFloat, a cryptocurrency exchange operating without Know Your Customer (KYC) and Anti-Money Laundering (AML) protections, suffered a hack in February 2024. Attackers stole approximately $26.1 million in Bitcoin and Ether, likely through private key theft. The team prioritized fixing vulnerabilities over public disclosure.</li><li><strong>Duelbits</strong> ($4.6 Million Loss) Duelbits, a crypto casino, incurred a substantial loss of $4.6 million due to a compromised private key. Attackers gained access to Duelbits’ deployer address, minting tokens and distributing them across multiple addresses just before Valentine’s Day 2024. CertiK cybersecurity suggested a private key compromise as the likely cause, emphasizing the importance of key security in crypto casinos.<br /></li></ol><h2 id="header-1">In-depth Analysis: Hacks vs. Fraud</h2><p>Hacking incidents maintained their dominance in crypto-related losses during February 2024, far surpassing fraudulent activities. Hacking accounted for 97.54% of total losses, approximately $65 million, while fraud incidents comprised only 2.46%, totaling around $1.65 million. This stark difference underscores the ongoing challenge of hacking in the cryptocurrency ecosystem, emphasizing the urgent need for robust security measures to effectively mitigate such risks.</p><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/7dacabe83425487fb2d4bace60bb90df.jpg" /><p></p><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/81dcde809098447ea48f8171fd3f81c4.jpg" /><h2 id="header-2">DeFi vs. CeFi Analysis</h2><p>During February 2024, DeFi platforms emerged as the primary targets for exploits, with CeFi platforms experiencing no major attacks. DeFi platforms incurred total losses of approximately $67 million across 12 incidents, highlighting the vulnerability of decentralized protocols. This comparison underscores the challenges in securing DeFi platforms and emphasizes the critical need for rigorous security audits and proactive risk management strategies.</p><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/3c75ff57a3c14dfea70da95155c91c73.png" /><h2 id="header-3">Losses by Chain</h2><h2 id="header-4"></h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/fae28381aea0438180281f37a2f483e3.png" /><p>In February 2024, Ethereum stood out as the most targeted blockchain network, bearing the brunt of the losses. It faced 12 separate attacks, making up 85.71% of the total losses across targeted chains. On the other hand, BNB Chain and Bitcoin experienced fewer incidents, each accounting for 7.14% of the total losses. These figures underscore the vulnerabilities present in widely used blockchain networks, emphasizing the ongoing need for robust security enhancements.</p><p></p><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/40938ee86b964c09970b13de6558f14f.png" /><h2 id="header-5">Crypto Losses Year-to-Date </h2><p>Total Loss: $200,478,412 Total Incidents: 32</p><p>In 2024, the cryptocurrency market witnessed a notable increase in losses compared to the previous year, highlighting ongoing challenges within the industry. Year-to-date, total losses stand at $200,478,412 across 32 specific incidents, marking a 15.4% rise from the same period in 2023, where losses totaled $173,693,675. These losses result from various factors, including hacking incidents and fraudulent activities, demonstrating the persistent threats present in the cryptocurrency ecosystem.</p><h2 id="header-6">Conclusion </h2><p>The analysis of crypto losses observed in February 2024 offers valuable insights into the evolving cybersecurity landscape within the cryptocurrency industry. With hacking incidents dominating and decentralized finance platforms becoming primary targets, it&#39;s clear that securing digital assets remains a significant challenge. As losses continue to accumulate year-to-date, stakeholders must prioritize proactive measures to enhance security protocols and mitigate risks effectively.</p><p>Collaboration among industry players, alongside continuous vigilance and robust risk management strategies, is crucial to strengthening the resilience of the crypto ecosystem. By addressing vulnerabilities and implementing stringent security measures, the industry can navigate the complexities of the digital landscape and safeguard the market&#39;s integrity for all participants.</p>

$67 Million Lost to Crypto Hacks in February 2024

Table of Contents

tradedog

Other articles published on Mar 28, 2024

Bitwise files with SEC for spot Ether ETF listing

Can DeFi Make You A Crypto Millionaire? DOT, Bitbot & Scorpion Casino Can With These Crypto Predi...

Everything BlackRock CEO Larry Fink Said About Bitcoin

Next Top Altcoins to Buy Before Going Mainstream Outperforming Gold and Silver

Forecast Points to Significant Price Jumps for XRP and Stellar Lumens

Solana (SOL) Struggles To Regain $200 Peak, Investors Hedge Portfolio with New Cryptocurrency O2T...

Join our free newsletter for daily crypto updates!