Compound

In July 2024, the cryptocurrency sector suffered a series of devastating attacks, culminating in losses amounting to approximately $266 million.
Blockchain research firm <a href="https://crypto.news/tag/peckshield/" target="_blank" rel="noopener noreferrer nofollow">PeckShield</a> revealed in <a href="https://twitter.com/PeckShieldAlert/status/1818853720861618634" target="_blank" rel="noopener noreferrer nofollow">an X post</a> on Aug. 1 that attacks against decentralized protocols in July surged to $266 million, a 51% increase compared to the $176 million <a href="https://crypto.news/report-hackers-stole-176-2m-in-crypto-in-june/" target="_blank" rel="noopener noreferrer nofollow">reported</a> in June.
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 <a href="https://twitter.com/hashtag/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#PeckShieldAlert</a> July 2024 witnessed 16 hacks in the crypto space, resulting in ~$266 million (w/o Compound Potential Governance Attack)) in losses. Top 10 Hacks:<a href="https://twitter.com/hashtag/WazirX?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#WazirX</a>: $230 million (CeFi)<a href="https://twitter.com/hashtag/Compound?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Compound</a>: $24 million (Potential Governance Attack)<a href="https://twitter.com/hashtag/LI?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#LI</a>.FI: $9.73 million<a href="https://twitter.com/hashtag/Bittensor?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bittensor</a>:… <a href="https://t.co/jsmP9qLuqR" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/jsmP9qLuqR</a>— PeckShieldAlert (@PeckShieldAlert) <a href="https://twitter.com/PeckShieldAlert/status/1818853720861618634?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 1, 2024</a>
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The most significant breach last month involved WazirX, one of India’s largest cryptocurrency exchanges, which <a href="https://crypto.news/indian-exchange-wazirx-loses-234m-in-recent-exploit/" data-type="post" data-id="14285544" target="_blank" rel="noopener noreferrer nofollow">lost</a> $230 million in what appears to be a highly sophisticated attack carried out by North Korea’s hackers. The attack was a major blow to the exchange, leading to a <a href="https://crypto.news/wazirx-halts-trading-closes-deposits-following-235m-attack/" target="_blank" rel="noopener noreferrer nofollow">pause</a> in withdrawals. Subsequently, WazirX launched a <a href="https://crypto.news/wazirx-co-founder-announces-bounty-program-to-recover/" target="_blank" rel="noopener noreferrer nofollow">program</a> in an effort to recover the funds.
Another notable incident involved Compound Finance, a decentralized lending protocol, which experienced a governance attack by a group known as the “Golden Boys,” which pushed through a <a href="https://compound.finance/governance/proposals/289" target="_blank" rel="noopener noreferrer nofollow">proposal</a> that allocated 499,000 COMP tokens — valued at $24 million — to a vault under their control.
The cross-chain liquidity aggregation protocol LI.FI also <a href="https://crypto.news/cross-chain-protocol-li-fi-suffers-8m-hack-attack/" target="_blank" rel="noopener noreferrer nofollow">fell victim</a> to a hack on July 16, resulting in losses of $9.73 million. In addition, Bittensor, a decentralized machine learning network, was one of the first protocols to suffer an exploit last month, <a href="https://crypto.news/bittensor-halts-network-following-8m-theft-due-to-private-key-leak/" rel="noopener noreferrer nofollow">lo</a><a href="https://crypto.news/bittensor-halts-network-following-8m-theft-due-to-private-key-leak/" target="_blank" rel="noopener noreferrer nofollow">s</a><a href="https://crypto.news/bittensor-halts-network-following-8m-theft-due-to-private-key-leak/" rel="noopener noreferrer nofollow">ing</a> $8 million on July 3 due to an attack targeting its staking mechanism.&nbsp;
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Meanwhile, Rho Markets, a lending protocol, experienced a $7.6 million breach. However, in an interesting twist, the exploiters <a href="https://crypto.news/rho-markets-attacker-offers-to-return-funds-says-incident-not-a-hack/" target="_blank" rel="noopener noreferrer nofollow">sought</a> to return the stolen funds, claiming the incident was not a hack.
On July 31, <a href="https://crypto.news/terra-exploited-for-6-8m-due-to-reentrancy-vulnerability-report/" target="_blank" rel="noopener noreferrer nofollow">reports</a> confirmed that the Terra blockchain protocol also witnessed a hack, leading to a $6.8 million in loss across multiple cryptocurrencies. As crypto.news reported, the attack exploited a reentrancy vulnerability that had been identified a few months ago.
Dough Finance, a liquidity protocol, <a href="https://x.com/CyversAlerts/status/1811663035242553450?t=kkZV72eANNlf0vg7-ubLrQ&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">lost</a> $1.8 million in Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) and USD Coin (<a href="https://crypto.news/price/usd-coin/" target="_blank" rel="noopener noreferrer nofollow">USDC</a>) to a flash-loan attack on July 12. Similarly, Minterest, a lending and borrowing protocol, <a href="https://x.com/Minterest/status/1812925531039670714?t=m99KfcHUuIdXFdSYxhtwng&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">saw</a> a $1.4 million loss due to a manipulation of the exchange rate on one of its markets.&nbsp;
Decentralized staking platform MonoSwap also <a href="https://crypto.news/monoswap-suffers-hack-urges-users-to-withdraw-funds/" target="_blank" rel="noopener noreferrer nofollow">reported</a> a $1.3 million loss from an attack that allowed the perpetrators to withdraw staked liquidity from the protocol. Finally, Delta Prime, another decentralized finance platform, <a href="https://defillama.com/protocol/deltaprime" target="_blank" rel="noopener noreferrer nofollow">suffered</a> a $1 million breach, though $900,000 of the stolen funds were later recovered.
Read more: <a href="https://crypto.news/bitcoin-etfs-hold-inflows-by-a-string-ethereums-outflows-start-again/" rel="noopener noreferrer nofollow"> Bitcoin ETFs hold inflows by string, Ethereum’s outflows start again </a>

Crypto companies, defi lost $266m to hackers in July

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