The latest report from Beosin EagleEye reveals a significant surge in blockchain security incidents during November 2023, resulting in a staggering total loss exceeding $356 million. This represents an alarming 6.9-fold increase compared to the losses reported in October.
Hacker Attacks Resulted in $335 Million Loss Alone
Hacker attacks dominated the losses, constituting approximately $335.63 million. Two high-profile incidents involving stolen funds, each exceeding $100 million, sent shockwaves through the industry.
Poloniex, a cryptocurrency exchange, experienced a hack resulting in losses of approximately $126 million, while HTX, in conjunction with its affiliated cross-chain bridge HECO Bridge, suffered a theft of approximately $110 million.
Notably, these two incidents, both linked to Sun Yuchen, accounted for a significant 66% of the total losses attributed to hacker attacks in November.
Phishing scams also witnessed a surge, with individual addresses falling victim to schemes exceeding $1 million. The increase in both the scale and impact of security breaches highlights the persistent threat landscape within the blockchain and cryptocurrency space.
The global cryptocurrency landscape witnessed a surge in crime cases involving amounts exceeding $100 million, encompassing various forms of fraud and money laundering.
In November, both centralized exchanges (CEX) and decentralized exchanges (DEX) experienced security incidents, resulting in a combined loss of $215 million. Platforms such as Poloniex, HTX, CoinSpot, dYdX, and KyberSwap were among those affected.
The report strongly recommends major projects to strengthen private key management, conduct routine security audits, establish emergency response plans, and intensify security awareness training for privileged employees. These measures are crucial to fortify the resilience of cryptocurrency platforms against the rising threats in the evolving landscape of digital assets.
Phishing Scams and Rug Pulls Witness an Uptick
The increasing incidents of phishing scams in the cryptocurrency landscape prompt advisories for users to securely store private keys, exercise caution during signing procedures, and avoid engagement with suspicious content.
On the regulatory front, the US Treasury Department has taken action against the cryptocurrency mixing platform Sinbad. Allegations link the platform to North Korean hackers, accusing Sinbad of handling funds from the Horizon Bridge and Axie Infinity hacking incidents.
Sinbad faces sanctions for its alleged involvement in activities such as evading sanctions, drug trafficking, purchasing materials for child sexual abuse, and participating in illegal sales on the dark web market. The regulatory actions underscore the ongoing efforts to combat illicit activities within the cryptocurrency space.